Synopsis: Mortgage lending issues. Requires the homeowner
protection unit (unit) within the attorney general's office to establish a
toll free telephone number to receive calls from persons having
information about suspected fraudulent transactions and practices
concerning residential real estate transactions. Requires the unit to
share information reported by callers to the telephone number with
appropriate law enforcement and regulatory agencies. Requires the
department of local government finance (DLGF) to establish an
electronic system for the collection and storage of sales disclosure form
data for real estate conveyances. Provides that the system must allow
closing agents to input the sales disclosure form data into the system;
and (2) submit the form electronically to a data base maintained by the
DLGF. Requires the DLGF to make the data base accessible to county
auditors, county and township assessors, and the legislative services
agency. Requires the DLGF to establish electronic systems that
automatically apply: (1) the mortgage deduction to a person entitled to
the deduction; and (2) the homestead credit to a person entitled to the
credit. Provides that the systems must allow closing agents to: (1) input
information about the mortgage transaction that is the basis for the
deduction or the credit; and (2) submit the form electronically to data
bases maintained by the DLGF. Requires the DLGF to make the data

(Continued next page)

Effective: Upon passage; July 1, 2008; January 1, 2009.

Bardon, Murphy, Bardon, Pierce

January 16, 2008, read first time and referred to Committee on Financial Institutions.
January 24, 2008, reported _ Do Pass.
January 29, 2008, read second time, amended, ordered engrossed.

Digest Continued

bases accessible to county auditors. Requires a county auditor to accept
an electronic filing for the mortgage deduction or the homestead credit
if the filing is complete. Prohibits a county auditor from requiring any
other information or form of identification for a person to claim the
mortgage deduction or the homestead credit. Requires the DLGF to
establish an electronic system for the collection and storage of the: (1)
names; and (2) license, registration, or certificate numbers; of certain
professionals that participate in or assist with residential mortgage
transactions. Provides that the system must allow closing agents to: (1)
input the required information with respect to each professional
involved in the transaction; and (2) submit the form electronically to a
data base maintained by the DLGF. Requires the DLGF to make the
data base accessible to: (1) the state agencies responsible for regulating
the specified professionals; and (2) the homeowner protection unit in
the attorney general's office. For residential mortgage transactions that
close after June 30, 2008, and before January 1, 2010, requires a
closing agent to do the following at the time of closing: (1) In the case
of a first lien purchase money mortgage transaction, provide the
customer with the sales disclosure form prescribed by the DLGF and
the applications for the homestead credit and the mortgage deduction.
(2) In the case of a refinancing, provide the customer with the
application for the mortgage deduction. (3) Require the customer to
complete and sign the form or forms provided. (3) Collect the signed
and completed forms for filing. (4) Inform the customer of other
specified property tax deductions by providing the customer with a
form prescribed by the DLGF that describes the deductions. Requires
the closing agent to file the signed forms with the appropriate county
auditor. For a residential mortgage transaction that closes after
December 31, 2009, requires a closing agent to input and submit the
following information to the appropriate data bases maintained by the
DLGF, as applicable: (1) Information to enable the customer to obtain
the mortgage deduction and the homestead credit. (2) Sales disclosure
form data. (4) The names and license, certificate, or registration
numbers of specified professionals involved in the transaction.
Specifies that evidence of compliance with the licensing and
registration requirements for loan brokers, originators, and principal
managers shall include a national criminal history background check
by the Federal Bureau of Investigation (FBI). Specifies that the
securities commissioner (commissioner) shall require each: (1)
equitable owner of a loan brokerage business; (2) director, manager, or
officer of an applicant for licensure as a loan broker; and (3) applicant
for registration as an originator or a principal manager; to submit
fingerprints for a national criminal history background check by the
FBI. Prohibits the commissioner from releasing the results of a national
criminal history background check to a private entity. Allows the
commissioner to designate a multistate automated licensing system and
repository (system) as the sole entity responsible for processing
applications for: (1) licenses for loan brokers; and (2) certificates of
registration for originators and principal managers. Increases the
amount of the bond that a licensed loan broker must maintain with the
commissioner from $50,000 to $100,000. Eliminates the exemption
from the loan broker statute for persons authorized to make loans on
behalf of, or insured by, certain federal agencies. Specifies that a loan
broker is subject to the state statute requiring disclosure of a breach of
the security of any records: (1) maintained by the broker; and (2)
containing the personal information of a borrower or prospective
borrower. Prohibits loan brokers, originators, and principal managers
from disposing of unencrypted, unredacted personal information with
respect to borrowers or prospective borrowers without first taking
certain actions to render the personal information illegible or unusable.
Prohibits a person from performing specified acts in connection with
a contract for the services of a loan broker. Provides that first lien

(Continued next page)

Digest Continued

mortgage transactions are subject to regulation under the Uniform
Consumer Credit Code (UCCC). Requires a creditor, a mortgage
servicer, or an agent of a creditor to acknowledge a written offer made
in connection with a proposed short sale of property that is subject to
a mortgage that is at least 10 days delinquent. Provides that the
acknowledgment must be provided not later than 10 business days after
the date of the offer. Requires the creditor, servicer, or agent to accept
or reject the short sale offer not later than 20 business days after receipt
of the offer. For an adjustable rate mortgage, requires a creditor to
provide a one page disclosure document that provides the following
information: (1) The mortgage transaction's fully indexed rate. (2) The
maximum monthly payment that could be required under the terms of
the mortgage transaction, including amounts owed for taxes and
insurance, if the creditor will establish an escrow account for taxes and
insurance. Provides that a creditor is not liable to the debtor or any
other person if the estimate of monthly taxes and insurance provided
in the disclosure document differs from the actual taxes and insurance
owed at any time during the mortgage. Specifies that a violation of the
home loan practices act is a deceptive act subject to action by the
attorney general. For a deceptive act involving home loan practices,
increases: (1) the damages that may be awarded to an aggrieved
consumer; and (2) the amount of the civil penalties that may be
imposed on a violator. Provides that any civil penalties collected by the
attorney general shall be deposited in the home owner protection unit
account in the general fund. Prohibits a creditor from recommending
or issuing to a prospective borrower: (1) a stated income or no
documentation loan; or (2) a home loan if the creditor does not first
conduct a reasonable inquiry into the prospective borrower's
creditworthiness. Provides that if a creditor conducts a reasonable
inquiry, the creditor is not liable if the borrower later defaults on a
home loan issued by the creditor. Requires settlement service providers
to make closing documents available to borrowers at least 48 hours
before the closing. Provides that if terms of the home loan set forth in
the documents provided differ from the terms presented to the borrower
at the time of closing, the borrower is entitled to delay or reschedule
the closing without penalty and without forfeiting the right to enter into
the loan or the purchase contract. Increases the statutory damages that
may be recovered by a person aggrieved by a violation of the home
loan practices act (act) from: (1) two times; to (2) four times; the
amount of the finance charges under the contract. Enhances the crime
involving a knowing or intentional violation of the act from a Class A
misdemeanor to a Class D felony. Increases the civil penalty for the
violation of: (1) the act; or (2) an injunction issued to enjoin a violation
of the act; from $10,000 to $20,000. Requires the real estate appraiser
licensure and certification board to require each initial applicant for
licensure or certification as a real estate appraiser to submit fingerprints
for a national criminal history background check by the FBI. Prohibits
the board from releasing the results of a national criminal history
background check to a private entity. Requires various state agencies
to form the mortgage lending and fraud prevention task force to
coordinate the state's efforts to: (1) regulate the various participants
involved in originating, issuing, and closing home loans; (2) enforce
state laws and rules concerning mortgage lending practices and
mortgage fraud; and (3) prevent fraudulent practices in the home loan
industry and investigate and prosecute cases involving mortgage fraud.
Requires the Indiana housing and community development authority
to provide, not later than November 1, 2008, a report to the legislative
council that includes the following: (1) An identification of new and
existing funding sources that can be used to assist Indiana homeowners
in refinancing their existing mortgage transactions, in order to prevent
the foreclosure of the homes secured by the mortgages. (2) A plan for
the rehabilitation of areas in Indiana that have been adversely or

(Continued next page)

Digest Continued

disproportionately affected by mortgage foreclosures. Requires the
securities commissioner and the director of the department of financial
institutions to cooperate to determine the appropriate state agency or

department to regulate a person subject to regulation, licensure, or
registration under both the loan broker statute and the UCCC. Repeals
provisions that exclude mortgage transactions from the UCCC.
Beginning with the school year that begins in 2010, requires school
corporations and accredited nonpublic schools to include in their
curricula for grades 9 through 12 instruction designed to: (1) increase
students' awareness of consumer transactions, including mortgage
transactions; and (2) foster personal financial responsibility. Provides
that a school corporation or an accredited nonpublic school may
provide the instruction by integrating it into its mathematics
curriculum. Requires the department of education and the department
of financial institutions to develop guidelines to assist teachers
assigned to provide the instruction.

Reprinted

January 30, 2008

Second Regular Session 115th General Assembly (2008)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in thisstyletype.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or thisstyletype reconciles conflicts
between statutes enacted by the 2007 Regular Session of the General Assembly.

HOUSE BILL No. 1360

A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 4-6-12-3.5; (08)HB1360.2.1. -->

SECTION 1. IC 4-6-12-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3.5. (a) Not later than July 1, 2008, the unit
shall establish a toll free telephone number to receive calls from
persons having information about suspected fraudulent:
(1) mortgage lending practices;
(2) real estate appraisals; or
(3) other practices;
involving residential real estate transactions.
(b) The toll free telephone number required by this section shall
be staffed by:
(1) employees or investigators of the unit who have knowledge
of the laws concerning:
(A) mortgage lending practices;
(B) real estate appraisals; or
(C) other practices;
involving residential real estate transactions;
(2) representatives of any of the entities described in section
4(a)(8) through 4(a)(10) of this chapter who have knowledge
of the laws concerning:
(A) mortgage lending practices;
(B) real estate appraisals; or
(C) other practices;
involving residential real estate transactions; or
(3) a combination of persons described in subdivisions (1) and
(2).
The attorney general shall designate persons to staff the toll free
telephone number as required by this subsection.
(c) The persons designated by the attorney general under
subsection (b) to staff the toll free telephone number required by
this section shall ensure that any information received from callers
to the telephone number is shared with any entity described in
section 4 of this chapter that has jurisdiction over the matter
reported. The unit shall establish uniform procedures for:
(1) responding to calls received;
(2) protecting:
(A) the anonymity of callers who wish to report
information anonymously; or
(B) the identity of callers who request that their identity
not be disclosed;
(3) documenting and verifying information reported by
callers; and
(4) transmitting reported information to the appropriate
entities described in section 4 of this chapter.
(d) The unit shall publicize the availability of the toll free
telephone number established under this section in a manner
reasonably designed to reach members of the public.

SOURCE: IC 4-6-12-9; (08)HB1360.2.2. -->
SECTION 2. IC 4-6-12-9, AS AMENDED BY P.L.64-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 9. (a) The homeowner protection unit account
within the general fund is established to support the operations of the
unit. The account is administered by the attorney general.
(b) The homeowner protection unit account consists of: (1) fees collected under IC 24-9-9; and
(2) civil penalties collected under IC 24-5-0.5-4(l)(3).
(c) The expenses of administering the homeowner protection unit
account shall be paid from money in the account.
(d) The treasurer of state shall invest the money in the homeowner
protection unit account not currently needed to meet the obligations of

the account in the same manner as other public money may be invested.
(e) Money in the homeowner protection unit account at the end of
a state fiscal year does not revert to the state general fund.

SOURCE: IC 6-1.1-5.5-3; (08)HB1360.2.3. -->
SECTION 3. IC 6-1.1-5.5-3, AS AMENDED BY P.L.219-2007,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 3. (a) For purposes of this section, "party"
includes:
(1) a seller of property that is exempt under the seller's ownership;
or
(2) a purchaser of property that is exempt under the purchaser's
ownership;
from property taxes under IC 6-1.1-10.
(b) Before Except as provided in section 3.5 of this chapter, in
addition to filing a conveyance document with the county auditor
under IC 6-1.1-5-4, all the parties to the conveyance must do the
following:
(1) Complete and sign a sales disclosure form as prescribed by the
department of local government finance under section 5 of this
chapter. All the parties may sign one (1) form, or if all the parties
do not agree on the information to be included on the completed
form, each party may sign and file a separate form.
(2) Before filing a sales disclosure form with the county auditor,
submit the sales disclosure form to the county assessor. The
county assessor must review the accuracy and completeness of
each sales disclosure form submitted immediately upon receipt of
the form and, if the form is accurate and complete, stamp the form
as eligible for filing with the county auditor and return the form
to the appropriate party for filing with the county auditor. If
multiple forms are filed in a short period, the county assessor
shall process the forms as quickly as possible. For purposes of this
subdivision, a sales disclosure form is considered to be accurate
and complete if:
(A) the county assessor does not have substantial evidence
when the form is reviewed under this subdivision that
information in the form is inaccurate; and
(B) the form:
(i) substantially conforms to the sales disclosure form
prescribed by the department of local government finance
under section 5 of this chapter; and
(ii) is submitted to the county assessor in a format usable to
the county assessor.
(3) File the sales disclosure form with the county auditor.
(c) Except as provided in subsection (d), the auditor shall forward
each sales disclosure form to the county assessor. The county assessor
shall retain the forms for five (5) years. The county assessor shall
forward the sales disclosure form data to the department of local
government finance and the legislative services agency in an electronic
format specified jointly by the department of local government finance
and the legislative services agency. The county assessor shall forward
a copy of the sales disclosure forms to the township assessors in the
county. The forms may be used by the county assessing officials, the
department of local government finance, and the legislative services
agency for the purposes established in IC 6-1.1-4-13.6, sales ratio
studies, equalization, adoption of rules under IC 6-1.1-31-3 and
IC 6-1.1-31-6, and any other authorized purpose.
(d) In a county containing a consolidated city, the auditor shall
forward the sales disclosure form to the appropriate township assessor.
The township assessor shall forward the sales disclosure form to the
department of local government finance and the legislative services
agency in an electronic format specified jointly by the department of
local government finance and the legislative services agency. The
forms may be used by the county assessing officials, the department of
local government finance, and the legislative services agency for the
purposes established in IC 6-1.1-4-13.6, sales ratio studies,
equalization, adoption of rules under IC 6-1.1-31-3 and IC 6-1.1-31-6,
and any other authorized purpose.
(e) If a sales disclosure form includes the telephone number or
Social Security number of a party, the telephone number or Social
Security number is confidential.
(f) County assessing officials and other local officials may not
establish procedures or requirements concerning sales disclosure forms
that substantially differ from the procedures and requirements of this
chapter.

SOURCE: IC 6-1.1-5.5-3.5; (08)HB1360.2.4. -->
SECTION 4. IC 6-1.1-5.5-3.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 3.5. (a) This section applies to a
conveyance that:
(1) is a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction; and
(2) is closed after December 31, 2009. (b) Not later than September 1, 2009, the department of local
government finance shall establish and maintain an electronic
system for the collection and storage of the sales disclosure form

data set forth in section 5(a) of this chapter with respect to a
conveyance to which this section applies.
(c) The system established by the department under this section
must include a form that:
(1) is uniformly accessible in an electronic format to the
closing agent (as defined in IC 6-1.1-12-43(a)(2)) in the
transaction; and
(2) allows the closing agent to:
(A) input the sales disclosure form data set forth in section
5(a) of this chapter with respect to the transaction; and
(B) submit the form electronically to a data base
maintained by the department of local government finance. (d) Subject to subsection (e), the department shall make the
information stored in the data base described in subsection
(c)(2)(B) accessible to:
(1) county auditors;
(2) county assessors;
(3) township assessors;
(4) the legislative services agency; and
(5) the department;
for the purposes authorized by section 3(c) and 3(d) of this chapter.
(e) If the sales disclosure form data submitted by a closing agent
under subsection (c)(2)(B) includes the telephone number or the
Social Security number of a party, the telephone number or the
Social Security number is confidential.

SOURCE: IC 6-1.1-5.5-5; (08)HB1360.2.5. -->
SECTION 5. IC 6-1.1-5.5-5, AS AMENDED BY P.L.154-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 5. (a) The department of local government finance
shall prescribe a sales disclosure form for use under this chapter. The
form prescribed by the department of local government finance must
include at least the following information:
(1) The key number of the parcel (as defined in IC 6-1.1-1-8.5).
(2) Whether the entire parcel is being conveyed.
(3) The address of the property.
(4) The date of the execution of the form.
(5) The date the property was transferred.
(6) Whether the transfer includes an interest in land or
improvements, or both.
(7) Whether the transfer includes personal property.
(8) An estimate of any personal property included in the transfer.
(9) The name, address, and telephone number of:
(A) each transferor and transferee; and
(B) the person that prepared the form.
(10) The mailing address to which the property tax bills or other
official correspondence should be sent.
(11) The ownership interest transferred.
(12) The classification of the property (as residential, commercial,
industrial, agricultural, vacant land, or other).
(13) The total price actually paid or required to be paid in
exchange for the conveyance, whether in terms of money,
property, a service, an agreement, or other consideration, but
excluding tax payments and payments for legal and other services
that are incidental to the conveyance.
(14) The terms of seller provided financing, such as interest rate,
points, type of loan, amount of loan, and amortization period, and
whether the borrower is personally liable for repayment of the
loan.
(15) Any family or business relationship existing between the
transferor and the transferee.
(16) Other information as required by the department of local
government finance to carry out this chapter.
If a form under this section includes the telephone number or the Social
Security number of a party, the telephone number or the Social Security
number is confidential.
(b) The instructions for completing the form described in subsection
(a) must include the information described in IC6-1.1-12-43(c)(1). IC 6-1.1-12-43(b)(1).

SOURCE: IC 6-1.1-5.5-6; (08)HB1360.2.6. -->
SECTION 6. IC 6-1.1-5.5-6, AS AMENDED BY P.L.154-2006,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 6. (a) Subject to subsection (c), the county
auditor may not refuse to accept a conveyance document if: solely
because:
(1) the sales disclosure form signed by all the parties and attested
as required under section 9 of this chapter is not included with the
document; or
(2) the sales disclosure form does not contain the information
described in section 5(a) of this chapter; or
(3) in the case of a conveyance to which section 3.5 of this
chapter applies:
(A) the closing agent fails to submit an electronic form in
accordance with section 3.5(c)(2)(B) of this chapter; or
(B) the electronic form submitted by the closing agent
under section 3.5(c)(2)(B) of this chapter is incomplete or
determined by any official or agency described in section

3.5(d) of this chapter to be inaccurate.
(b) Subject to subsection (c), the county recorder shallnot may not
refuse to record a conveyance document withoutevidencethatthepartieshavefiledacompletedsalesdisclosureformwiththecountyauditor. solely on the basis of any of the reasons set forth in subsection
(a). (c) Notwithstanding subsections (a) and (b), if any of the
circumstances described in subsection (a)(1) through (a)(3) apply:
(1) a party to the conveyance who is required to file a sales
disclosure form under section 3 of this chapter:
(A) is not relieved of the party's duty to file or correct the
sales disclosure form required by this chapter; and
(B) is subject to the penalties set forth in section 12of this
chapter; and
(2) a closing agent who is required to submit an electronic
sales disclosure form under section 3.5(c)(2)(B) of the chapter:
(A) is not relieved of the closing agent's duty to submit or
correct the electronic sales disclosure form required by
section 3.5(c)(2)(B) this chapter; and
(B) is subject to the penalties set forth in section 12(f) of
this chapter.

SOURCE: IC 6-1.1-5.5-9; (08)HB1360.2.7. -->
SECTION 7. IC 6-1.1-5.5-9 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 9. (a) Except as
provided in subsection (b), a person who signs a sales disclosure form
shall attest in writing and under penalties of perjury that to the best of
the person's knowledge and belief the information contained in the
sales disclosure form is true and correct. (b) An electronic sales disclosure form that is submitted in
accordance with section 3.5(c)(2)(B) of this chapter is subject to
any verification requirements that the department may prescribe
by rule adopted under IC 4-22-2.

SOURCE: IC 6-1.1-5.5-12; (08)HB1360.2.8. -->
SECTION 8. IC 6-1.1-5.5-12 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 12. (a) Except as
provided in subsection (f), a party to a conveyance who:
(1) is required to file a sales disclosure form under this chapter;
and
(2) fails to file a sales disclosure form at the time and in the
manner required by this chapter;
is subject to a penalty in the amount determined under subsection (b).
(b) The amount of the penalty under subsection (a) is the greater of:
(1) one hundred dollars ($100); or
(2) twenty-five thousandths percent (0.025%) of the sale price of

the real property transferred under the conveyance document.
(c) Except as provided in subsection (f), the township assessor in
a county containing a consolidated city, or the county assessor in any
other county, shall:
(1) determine the penalty imposed under this section;
(2) assess the penalty to the party to a conveyance; and
(3) notify the party to the conveyance that the penalty is payable
not later than thirty (30) days after notice of the assessment.
(d) Except as provided in subsection (f), the county auditor shall:
(1) collect the penalty imposed under this section;
(2) deposit penalty collections as required under section 4 of this
chapter; and
(3) notify the county prosecuting attorney of delinquent payments.
(e) Except as provided in subsection (f), the county prosecuting
attorney shall initiate an action to recover a delinquent penalty under
this section. In a successful action against a person for a delinquent
penalty, the court shall award the county prosecuting attorney
reasonable attorney's fees. (f) A closing agent who: (1) is required to submit an electronic sales disclosure form
under section 3.5(c)(2)(B) of this chapter; and
(2) fails to submit the electronic sales disclosure form at the
time and in the manner prescribed by the department of local
government finance;
is subject to the penalty set forth in IC 6-1.1-12-43(h).

SOURCE: IC 6-1.1-12-2; (08)HB1360.2.9. -->
SECTION 9. IC 6-1.1-12-2, AS AMENDED BY P.L.183-2007,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) Except as provided in section 17.8 of
this chapter and subject to subsection (d), a person who desires to
claim the deduction provided by section 1 of this chapter must file a
statement in duplicate, on forms prescribed by the department of local
government finance, with the auditor of the county in which the real
property, mobile home not assessed as real property, or manufactured
home not assessed as real property is located. With respect to real
property, the statement must be filed during the twelve (12) months
before June 11 of each year for which the person wishes to obtain the
deduction. With respect to a mobile home that is not assessed as real
property or a manufactured home that is not assessed as real property,
the statement must be filed during the twelve (12) months before
March 31 of each year for which the individual wishes to obtain the
deduction. The statement may be filed in person or by mail. If mailed,
the mailing must be postmarked on or before the last day for filing. In

addition to the statement required by this subsection, a contract buyer
who desires to claim the deduction must submit a copy of the recorded
contract or recorded memorandum of the contract, which must contain
a legal description sufficient to meet the requirements of IC 6-1.1-5,
with the first statement that the buyer files under this section with
respect to a particular parcel of real property. Upon receipt of the
statement and the recorded contract or recorded memorandum of the
contract, the county auditor shall assign a separate description and
identification number to the parcel of real property being sold under the
contract.
(b) The statement referred to in subsection (a) must be verified
under penalties for perjury, and the statement must contain the
following information:
(1) The balance of the person's mortgage or contract indebtedness
on the assessment date of the year for which the deduction is
claimed.
(2) The assessed value of the real property, mobile home, or
manufactured home.
(3) The full name and complete residence address of the person
and of the mortgagee or contract seller.
(4) The name and residence of any assignee or bona fide owner or
holder of the mortgage or contract, if known, and if not known,
the person shall state that fact.
(5) The record number and page where the mortgage, contract, or
memorandum of the contract is recorded.
(6) A brief description of the real property, mobile home, or
manufactured home which is encumbered by the mortgage or sold
under the contract.
(7) If the person is not the sole legal or equitable owner of the real
property, mobile home, or manufactured home, the exact share of
the person's interest in it.
(8) The name of any other county in which the person has applied
for a deduction under this section and the amount of deduction
claimed in that application.
(c) Except as provided in subsection (d), the authority for signing
a deduction application filed under this section may not be delegated
by the real property, mobile home, or manufactured home owner or
contract buyer to any person except upon an executed power of
attorney. The power of attorney may be contained in the recorded
mortgage, contract, or memorandum of the contract, or in a separate
instrument. (d) As used in this subsection, "transaction" has the meaning set

forth in section 43(a)(4) of this chapter. Not later than September
1, 2009, the department of local government finance shall establish
and maintain an electronic system that automatically applies the
deduction provided by section 1 of this chapter to a person entitled
to the deduction provided by section 1 of this chapter. The system
established by the department under this subsection must include
a form that, with respect to a transaction that is closed after
December 31, 2009:
(1) is uniformly accessible in an electronic format to the
closing agent (as defined in section 43(a)(2) of this chapter) in
the transaction that is the basis for the person's eligibility for
the deduction provided by section 1 of this chapter; and
(2) allows the closing agent to:
(A) input the information concerning the transaction that
is the basis for the person's eligibility for the deduction
provided by section 1 of this chapter; and
(B) submit the form electronically to a data base
maintained by the department of local government finance.
The department shall make the data base described in subdivision
(2)(B) accessible to the county auditor in each county in Indiana.
If the form submitted by a closing agent under subdivision (2)(B)
is complete, the county auditor in the county in which the real
property is located must accept the form and apply the deduction
in accordance with section 17.8(c) of this chapter. The county
auditor may not require the closing agent, the person entitled to
the deduction, or any other person to provide any other
information or form of identification for the person entitled to the
deduction under section 1 of chapter to receive the deduction. If the
form submitted by a closing agent under subdivision (2)(B)
includes the telephone number or Social Security number of any
individual, the telephone number or Social Security number is
confidential.

SOURCE: IC 6-1.1-12-42.5; (08)HB1360.2.10. -->
SECTION 10. IC 6-1.1-12-42.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 42.5. (a) This section applies to a
transaction that:
(1) is a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction; and
(2) is closed after December 31, 2009.
(b) Not later than September 1, 2009, the department of local
government finance shall establish and maintain an electronic

system for the collection and storage of the following information
concerning any of the following persons that have participated in
or assisted with a transaction to which this section applies, or that
will participate in or assist with a transaction to which this section
applies:
(1) The name and license number (under IC 23-2-5) of each
loan brokerage business involved in the transaction.
(2) The name and registration number (under IC 23-2-5) of
each originator involved in the transaction.
(3) The name and license number (under IC 25-34.1) of each:
(A) principal broker; and
(B) salesperson or broker-salesperson, if any;
involved in the transaction.
(4) The name and certificate number (under IC 27-7-3) of
each title insurance company involved in the transaction.
(5) The name and license number (under IC 27-1-15.6) of each
title insurance agent involved in the transaction.
(6) The name and:
(A) license or certificate number (under IC 25-34.1-3-8) of
each licensed or certified real estate appraiser; or
(B) license number (under IC 25-34.1) of each broker;
who appraises the property that is the subject of the
transaction.
(7) The name of the mortgagee and, if the mortgagee is
required to be licensed under IC 24-4.5-3-502, the license
number of the mortgagee.
(c)The system established by the department under this section
must include a form that:
(1) is uniformly accessible in an electronic format to the
closing agent (as defined in section 43(a)(2) of this chapter) in
the transaction; and
(2) allows the closing agent to:
(A) input the information described in subsection (b) with
respect to each person described in subsection (b) that
participates in or assists with the transaction, to the extent
determinable; and
(B) submit the form electronically to a data base
maintained by the department of local government finance. (d) Subject to subsection (e), the department shall make the
information stored in the data base described in subsection
(c)(2)(B) accessible to:
(1) each entity described in IC 4-6-12-4; and
(2) the homeowner protection unit established under
IC 4-6-12-2.
(e) The department, a closing agent who submits under
subsection (c), each entity described in IC 4-6-12-4, and the
homeowner protection unit established under IC 4-6-12-2 shall
exercise all necessary caution to avoid disclosure of any
information:
(1) concerning a person described in subsection (b), including
the person's license, registration, or certificate number; and
(2) contained in the data base described in subsection
(c)(2)(B);
except to the extent required or authorized by state or federal law.

SOURCE: IC 6-1.1-12-43; (08)HB1360.2.11. -->
SECTION 11. IC 6-1.1-12-43 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 43. (a) For
purposes of this section:
(1) "benefit" refers to:
(A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26, 29,
31, 33, or 34 of this chapter; or
(B) the homestead credit under IC 6-1.1-20.9-2.
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a
transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.(b)BeforeclosingatransactionafterDecember31,2004,aclosingagentmustprovidetothecustomertheformreferredtoinsubsection(c).(c)BeforeJune1,2004, (b) The department of local government
finance shall prescribe the a form to be provided by closing agents to
customers under subsection (b). (d)(1). The department shall make the
form available to closing agents, county assessors, county auditors, and
county treasurers in hard copy and electronic form. County assessors,
county auditors, and county treasurers shall make the form available to
the general public. The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under
section 1 of this chapter is required when residential real
property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed in one (1) of two (2) or more colors prescribed by
the department of local government finance that distinguish the
form from other documents typically used in a closing. referredtoinsubsection(b).(d) (c) A closing agent:
(1) may reproduce the form referred to in subsection (c); (b);
(2) in reproducing the form, must use a print color prescribed by
the department of local government finance; and
(3) is not responsible for the content of the form referred to in
subsection (c) (b) and shall be held harmless by the department
of local government finance from any liability for the content of
the form. (d) A closing agent must do the following with respect to a
transaction that is closed after June 30, 2008, and before January
1, 2010:
(1) At the time of closing:
(A) provide the customer with:
(i) if the transaction is a first lien purchase money
mortgage transaction, the sales disclosure form
prescribed by the department under IC 6-1.1-5.5-5, the
form prescribed by the department under
IC 6-1.1-20.9-3 to allow a person to claim the credit
provided by IC 6-1.1-20.9-2, and the form prescribed by
the department under section 2(a) of this chapter to
allow a person to claim the deduction provided by
section 1 of this chapter; or
(ii) if the transaction is a refinancing transaction, the
form prescribed by the department under section 2(a) of
this chapter to allow a person to claim the deduction
provided by section 1 of this chapter.
(B) require the customer to complete and sign the forms
provided under clause (A); and
(C) collect the forms signed and completed under clause
(B) for filing under subsection (e).
(2) At the time of the closing, inform the customer of the
deductions available under sections 9, 11, 13, 14, 16, 17.4, 26,
29, 31, 33, and 34 of this chapter by providing the customer
with the form prescribed by the department under subsection
(b).
(e) This subsection applies to a transaction that is closed after
June 30, 2008, and before January 1, 2010. The closing agent shall
file the forms completed and signed by the customer under
subsection (d)(1)(B) as follows:
(1) In the case of a first lien purchase money mortgage
transaction, the closing agent shall file:
(A) the signed sales disclosure form with the appropriate
county assessor and county auditor in accordance with
IC 6-1.1-5-3;
(B) the signed mortgage deduction form in accordance
with section 2(a) of the chapter; and
(C) the signed homestead credit form in accordance with
IC 6-1.1-20.9-3.
(2) In the case of a refinancing transaction, the closing agent
shall file the signed mortgage deduction form in accordance
with section 2(a) of this chapter. (f) This subsection applies to a transaction that is closed after
December 31, 2009. The closing agent shall do the following:
(1) At the time of the closing, inform the customer of the
deductions available under sections 9, 11, 13, 14, 16, 17.4, 26,
29, 31, 33, and 34 of this chapter by providing the customer
with the form prescribed by the department under subsection
(b).
(2) As soon as possible after the closing, and within the time
prescribed by the department of local government finance:
(A) for a transaction that is a first lien purchase money
mortgage transaction:
(i) input the electronic sales disclosure form data and
submit the electronic sales disclosure form in accordance
with IC 6-1.1-5.5-3.5(c)(2);
(ii) input the information and submit the form described
in IC 6-1.1-20.9-3(d)(2) to enable the customer to receive
the credit provided by IC 6-1.1-20.9-2;
(iii) input the information and submit the form described
in section 2(d)(2) of this chapter to enable the customer
to receive the deduction provided by section (1) of this
chapter; and
(iv) input the information and submit the form described
in IC 6-1.1-12-42.5(c)(2); and
(B) for a refinancing transaction:
(i) input the information and submit the form described
in section 2(d)(2) of this chapter to enable the customer

to receive the deduction provided by section (1) of this
chapter; and
(ii) input the information and submit the form described
in IC 6-1.1-12-42.5(c)(2), to the extent applicable.(e) (g) A closing agent to which this section applies shall document
its the closing agent's compliance with this section with respect to
each transaction in the form of verification of compliance signed by the
customer.(f) (h) A closing agent is subject to a civil penalty of twenty-five
dollars ($25) for each instance in which the closing agent fails to
comply with this section with respect to a customer. The penalty:
(1) may be enforced by the state agency that has administrative
jurisdiction over the closing agent in the same manner that the
agency enforces the payment of fees or other penalties payable to
the agency; and
(2) shall be paid into the property tax replacement fund. (i) A closing agent is not liable for any other damages claimed by a
customer because of: (1) the closing agent's mere failure to provide the an appropriate
document to the customer under this section; (2) with respect to a transaction that is closed after June 30,
2008, and before January 1, 2010, the closing agent's failure
to file a document under subsection (e);
(3) with respect to a transaction that is closed after December
31, 2009, the closing agent's failure to input any information
or submit any form described in subsection (f)(2); or (4) any determination made with respect to a customer's
eligibility for a benefit.(g) (j) The state agency that has administrative jurisdiction over a
closing agent shall:
(1) examine the closing agent to determine compliance with this
section; and
(2) impose and collect penalties under subsection (f). (h).

SOURCE: IC 6-1.1-20.9-3; (08)HB1360.2.12. -->
SECTION 12. IC 6-1.1-20.9-3, AS AMENDED BY P.L.183-2007,
SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) Subject to subsection (e), an individual
who desires to claim the credit provided by section 2 of this chapter
must file a certified statement in duplicate, on forms prescribed by the
department of local government finance, with the auditor of the county
in which the homestead is located. The statement shall include the
parcel number or key number of the real estate and the name of the
city, town, or township in which the real estate is located. With respect

to real property, the statement must be filed during the twelve (12)
months before June 11 of the year prior to the first year for which the
person wishes to obtain the credit for the homestead. With respect to
a mobile home that is not assessed as real property or a manufactured
home that is not assessed as real property, the statement must be filed
during the twelve (12) months before March 31 of the first year for
which the individual wishes to obtain the credit. The statement may be
filed in person or by mail. If mailed, the mailing must be postmarked
on or before the last day for filing. The statement applies for that first
year and any succeeding year for which the credit is allowed.
(b) The certified statement referred to in subsection (a) shall contain
the name of any other county and township in which the individual
owns or is buying real property.
(c) If an individual who is receiving the credit provided by this
chapter changes the use of the individual's real property, so that part or
all of that real property no longer qualifies for the homestead credit
provided by this chapter, the individual must file a certified statement
with the auditor of the county, notifying the auditor of the change of
use within sixty (60) days after the date of that change. An individual
who changes the use of the individual's real property and fails to file
the statement required by this subsection is liable for the amount of the
credit the individual was allowed under this chapter for that real
property.
(d) An individual who receives the credit provided by section 2 of
this chapter for property that is jointly held with another owner in a
particular year and remains eligible for the credit in the following year
is not required to file a statement to reapply for the credit following the
removal of the joint owner if:
(1) the individual is the sole owner of the property following the
death of the individual's spouse;
(2) the individual is the sole owner of the property following the
death of a joint owner who was not the individual's spouse; or
(3) the individual is awarded sole ownership of property in a
divorce decree. (e) As used in this subsection, "transaction" has the meaning set
forth in section 43(a)(4)(A) of this chapter. Not later than
September 1, 2009, the department of local government finance
shall establish and maintain an electronic system that
automatically applies the credit provided by section 2 of this
chapter to a person entitled to the credit provided by section 2 of
this chapter. The system established by the department under this
subsection must include a form that, with respect to a transaction

that is closed after December 31, 2009:
(1) is uniformly accessible in an electronic format to the
closing agent (as defined in section 43(a)(2) of this chapter) in
the transaction that is the basis for the person's eligibility for
the credit provided by section 2 of this chapter; and
(2) allows the closing agent to:
(A) input the information concerning the transaction that
is the basis for the person's eligibility for the credit
provided by section 2 of this chapter; and
(B) submit the form electronically to a data base
maintained by the department of local government finance.
The department shall make the data base described in subdivision
(2)(B) accessible to the county auditor in each county in Indiana.
If the form submitted by a closing agent under subdivision (2)(B)
is complete, the county auditor in the county in which the real
property is located must accept the form and apply the credit in
accordance with section 2(f) of this chapter. The county auditor
may not require the closing agent, the person entitled to the credit,
or any other person to provide any other information or form of
identification for the person entitled to the credit under section 2
of chapter to receive the credit. If the form submitted by a closing
agent under subdivision (2)(B) includes the telephone number or
Social Security number of any individual, the telephone number or
Social Security number is confidential.

SOURCE: IC 20-30-5-19; (08)HB1360.2.14. -->
SECTION 14. IC 20-30-5-19 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 19. (a) Beginning with the school
year that begins in the calendar year beginning January 1, 2010,
each school corporation (including each charter school) and each
nonpublic school that voluntarily has become accredited under
IC 20-19-2-8 shall include in its curriculum for all students in
grades 9 through 12 instruction designed to:
(1) increase students' awareness of certain consumer
transactions, including mortgage transactions; and
(2) foster personal financial responsibility.
(b) A school corporation (including a charter school) and a
nonpublic school that voluntarily has become accredited under
IC 20-19-2-8 may meet the requirements of subsection (a) by:
(1) integrating the instruction described in subsection (a) in its
required mathematics curriculum; or
(2) conducting a separate class or seminar that includes the
instruction described in subsection (a).
(c) A person may not receive a high school diploma from a
school subject to this section unless the person has received the
instruction required by this section.
(d) The department, in collaboration with the department of

financial institutions established by IC 28-11-1-1, shall develop
guidelines and the state board shall adopt rules under IC 4-22-2 to
assist teachers assigned to provide the instruction required by this
section.

SOURCE: IC 23-2-5-3; (08)HB1360.2.15. -->
SECTION 15. IC 23-2-5-3, AS AMENDED BY P.L.230-2007,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 3. (a) As used in this chapter, "certificate of
registration" means a certificate issued by the commissioner
authorizing an individual to: (1) engage in origination activities on behalf of a licensee; or
(2) act as a principal manager on behalf of a licensee.
(b) As used in this chapter, "creditor" means a person:
(1) that loans funds of the person in connection with a loan; and
(2) to whom the loan is initially payable on the face of the note or
contract evidencing the loan.
(c) As used in this chapter, "license" means a license issued by the
commissioner authorizing a person to engage in the loan brokerage
business.
(d) As used in this chapter, "licensee" means a person that is issued
a license under this chapter.
(e) As used in this chapter, "loan broker" means any person who, in
return for any consideration from any source procures, attempts to
procure, or assists in procuring, a loan from a third party or any other
person, whether or not the person seeking the loan actually obtains the
loan. "Loan broker" does not include:
(1) any supervised financial organization (as defined in
IC 24-4.5-1-301(20)), including a bank, savings bank, trust
company, savings association, or credit union;
(2) any other financial institution that is:
(A) regulated by any agency of the United States or any state;
and
(B) regularly actively engaged in the business of making
consumer loans that are not secured by real estate or taking
assignment of consumer sales contracts that are not secured by
real estate;
(3) any insurance company; or
(4) any person arranging financing for the sale of the person's
product.
(f) As used in this chapter, "loan brokerage business" means a
person acting as a loan broker.
(g) As used in this chapter, "origination activities" means
communication with or assistance of a borrower or prospective

borrower in the selection of loan products or terms.
(h) As used in this chapter, "originator" means a person engaged in
origination activities. The term "originator" does not include a person
who performs origination activities for any entity that is not a loan
broker under subsection (e).
(i) As used in this chapter, "person" means an individual, a
partnership, a trust, a corporation, a limited liability company, a limited
liability partnership, a sole proprietorship, a joint venture, a joint stock
company, or another group or entity, however organized.
(j) As used in this chapter, "registrant" means an individual who is
registered:
(1) to engage in origination activities under this chapter; or
(2) as a principal manager.
(k) As used in this chapter, "ultimate equitable owner" means a
person who, directly or indirectly, owns or controls ten percent (10%)
or more of the equity interest in a loan broker licensed or required to be
licensed under this chapter, regardless of whether the person owns or
controls the equity interest through one (1) or more other persons or
one (1) or more proxies, powers of attorney, or variances.
(l) As used in this chapter, "principal manager" means an individual
who:
(1) has at least three (3) years of experience:
(A) as a loan broker; or
(B) in financial services;
that is acceptable to the commissioner; and
(2) is principally responsible for the supervision and management
of the employees and business affairs of a licensee. (m) As used in this chapter, "personal information" includes
any of the following:
(1) An individual's first and last names or first initial and last
name.
(2) Any of the following data elements:
(A) A Social Security number.
(B) A driver's license number.
(C) A state identification card number.
(D) A credit card number.
(E) A financial account number or debit card number in
combination with a security code, password, or access code
that would permit access to the person's account.
(3) With respect to an individual, any of the following:
(A) Address.
(B) Telephone number.
(C) Information concerning the individual's:
(i) income or other compensation;
(ii) credit history;
(iii) credit score;
(iv) assets;
(v) liabilities; or
(vi) employment history. (n) As used in this chapter, personal information is "encrypted"
if the personal information:
(1) has been transformed through the use of an algorithmic
process into a form in which there is a low probability of
assigning meaning without use of a confidential process or
key; or
(2) is secured by another method that renders the personal
information unreadable or unusable.
(o) As used in this chapter, personal information is "redacted"
if the personal information has been altered or truncated so that
not more than the last four (4) digits of:
(1) a Social Security number;
(2) a driver's license number;
(3) a state identification number; or
(4) an account number;
are accessible as part of the personal information.

SOURCE: IC 23-2-5-4; (08)HB1360.2.16. -->
SECTION 16. IC 23-2-5-4, AS AMENDED BY P.L.230-2007,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) A person may not engage in the loan
brokerage business in Indiana unless the person first obtains a
license from the commissioner. Any person desiring to engage or
continue in the loan brokerage business shall apply to the
commissioner for a license under this chapter.
(b) An individual may not perform origination activities in
Indiana on behalf of a person licensed or required to be licensed
under this chapter unless the individual first obtains a certificate
of registration from the commissioner. An individual desiring tobeemployedbyalicensee to engage in origination activities on behalf of
a person licensed or required to be licensed under this chapter shall
apply to the commissioner for registration under this chapter.
(c) An individual may not act as a principal manager on behalf
of a person licensed or required to be licensed under this chapter
unless the individual first obtains a certificate of registration from
the commissioner. Any individual desiring to beemployedbyalicensee act as a principal manager on behalf of a person licensed or

required to be licensed under this chapter shall apply to the
commissioner for registration under this chapter. (d) The commissioner may request evidence of compliance with
this section at any of the following times:
(1) The time of application for an initial:
(A) license; or
(B) certificate of registration.
(2) The time of renewal of a license or certificate of
registration.
(3) Any other time considered necessary by the commissioner.
(e) For purposes of subsection (d), evidence of compliance with
this section shall include a criminal background check, including
a national criminal history background check (as defined in
IC 10-13-3-12) by the Federal Bureau of Investigation.

SOURCE: IC 23-2-5-5; (08)HB1360.2.17. -->
SECTION 17. IC 23-2-5-5, AS AMENDED BY P.L.230-2007,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 5. (a) An application for license or renewal of a
license must contain:
(1) consent to service of process under subsection (h);
(2) evidence of the bond required in subsection (e);
(3) an application fee of four hundred dollars ($400), plus two
hundred dollars ($200) for each ultimate equitable owner;
(4) an affidavit affirming that none of the applicant's ultimate
equitable owners, directors, managers, or officers have been
convicted, in any jurisdiction, of an offense involving fraud or
deception that is punishable by at least one (1) year of
imprisonment, unless waived by the commissioner under
subsection (f); (i);
(5) evidence that the applicant, if the applicant is an individual,
has completed the education requirements under section 21 of this
chapter;
(6) the name and registration number for each originator to be
employed by the licensee;
(7) the name and registration number for each principal manager;
and
(8) for each ultimate equitable owner, the following information:
(1) The name of the ultimate equitable owner.
(2) The address of the ultimate equitable owner, including the
home address of the ultimate equitable owner if the ultimate
equitable owner is an individual.
(3) The telephone number of the ultimate equitable owner,
including the home telephone number if the ultimate equitable

owner is an individual.
(4) The ultimate equitable owner's Social Security number and
date of birth, if the ultimate equitable owner is an individual.
(b) An application for registration as an originator shall be made on
a registration form prescribed by the commissioner. The application
must include the following information for the individual that seeks to
be registered as an originator:
(1) The name of the individual.
(2) The home address of the individual.
(3) The home telephone number of the individual.
(4) The individual's Social Security number and date of birth.
(5) The name of the:
(A) licensee; or
(B) applicant for licensure;
for whom the individual seeks to be employed as an originator.
(6) Consent to service of process under subsection (h).
(7) Evidence that the individual has completed the education
requirements described in section 21 of this chapter.
(8) An application fee of one hundred dollars ($100).
(9) All registration numbers previously issued to the individual
under this chapter, if applicable.
(c) An application for registration as a principal manager shall be
made on a registration form prescribed by the commissioner. The
application must include the following information for the individual
who seeks to be registered as a principal manager:
(1) The name of the individual.
(2) The home address of the individual.
(3) The home telephone number of the individual.
(4) The individual's Social Security number and date of birth.
(5) The name of the:
(A) licensee; or
(B) applicant for licensure;
for whom the individual seeks to be employed as a principal
manager.
(6) Consent to service of process under subsection (h).
(7) Evidence that the individual has completed the education
requirements described in section 21 of this chapter.
(8) Evidence that the individual has at least three (3) years of
experience in the:
(A) loan brokerage; or
(B) financial services;
business.

(9) An application fee of two hundred dollars ($200).
(10) All registration numbers previously issued to the individual,
if applicable.
(d) The commissioner shall require an applicant for registration as:
(1) an originator under subsection (b); or
(2) a principal manager under subsection (c);
to pass a written examination prepared and administered by the
commissioner or an agent appointed by the commissioner.
(e) A licensee must maintain a bond satisfactory to the
commissioner in the amount of fifty one hundred thousand dollars
($50,000), ($100,000), which shall be in favor of the state and shall
secure payment of damages to any person aggrieved by any violation
of this chapter by the licensee.
(f) The commissioner shall issue a license and license number to an
applicant that meets the licensure requirements of this chapter.
Whenever the registration provisions of this chapter have been
complied with, the commissioner shall issue a certificate of registration
and registration number authorizing the registrant to:
(1) engage in origination activities; or
(2) act as a principal manager;
whichever applies.
(g) Licenses and initial certificates of registration issued by the
commissioner are valid until January 1 of the second year after
issuance.
(h) Every applicant for licensure or registration or for renewal of a
license or a registration shall file with the commissioner, in such form
as the commissioner by rule or order prescribes, an irrevocable consent
appointing the secretary of state to be the applicant's agent to receive
service of any lawful process in any noncriminal suit, action, or
proceeding against the applicant arising from the violation of any
provision of this chapter. Service shall be made in accordance with the
Indiana Rules of Trial Procedure.
(i) Upon good cause shown, the commissioner may waive the
requirements of subsection (a)(4) for one (1) or more of an applicant's
ultimate equitable owners, directors, managers, or officers.
(j) Whenever an initial or a renewal application for a license or
registration is denied or withdrawn, the commissioner shall retain the
initial or renewal application fee paid.
(k) The commissioner shall require each:
(1) equitable owner; and (2) individual described in subsection (a)(4); and(2) (3) applicant for registration as:
(A) an originator; or
(B) a principal manager;
to undergo submit fingerprints for a national criminal history
background check attheexpenseofthe (as defined in IC 10-13-3-12)
by the Federal Bureau of Investigation, for use by the
commissioner in determining whether the equitable owner, the
individual described in subsection (a)(4), or the applicant should be
denied licensure or registration under this chapter for any reason
set forth in section 10(c) of this chapter. The equitable owner,
individual described in subsection (a)(4), or applicant shall pay any
fees or costs associated with the fingerprints and background check
required under this subsection. The commissioner may not release
the results of a background check described in this subsection to
any private entity.
(l) The commissioner may check the qualifications, background,
licensing status, and service history of each:
(1) equitable owner; and (2) individual described in subsection (a)(4); and(2) (3) applicant for registration as:
(A) an originator; or
(B) a principal manager;
by accessing, upon availability, a multistate automated licensing system
formortgagebrokersandoriginators,includingtheNationalMortgageLicensingDatabaseproposedbytheConferenceofStateBankSupervisorsandtheAmericanAssociationofResidentialMortgageRegulators. and repository described in section 11(a)(16) of this
chapter. The equitable owner, the individual described in subsection
(a)(4), or the applicant shall pay any fees or costs associated with a
check conducted under this subsection.

SOURCE: IC 23-2-5-6; (08)HB1360.2.18. -->
SECTION 18. IC 23-2-5-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. A licensee may not
continue engaging in the loan brokerage business unless the licensee's
license is renewed biennially. A registrant may not continue: (1) engaging in origination activities; or
(2) acting as a principal manager;
unless the registrant's certificate of registration is renewed biennially.
A licensee shall renew its license andthecertificatesofregistrationofitsregistrantemployees by filing with the commissioner, at least thirty
(30) days before the expiration of the registration, license, an
application containing any information the commissioner may require
to indicate any material change from the information contained in the
applicant's original application or any previous application. A

registrant may renew the registrant's certificate of registration by
filing with the commissioner, at least thirty (30) days before the
expiration of the registration, an application containing any
information the commissioner may require to indicate any material
change from the information contained in the applicant's original
application or any previous application.

SOURCE: IC 23-2-5-10; (08)HB1360.2.19. -->
SECTION 19. IC 23-2-5-10, AS AMENDED BY P.L.230-2007,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 10. (a) Whenever it appears to the commissioner
that a person has engaged in or is about to engage in an act or a practice
constituting a violation of this chapter or a rule or an order under this
chapter, the commissioner may investigate and may issue, with a prior
hearing if there exists no substantial threat of immediate irreparable
harm or without a prior hearing, if there exists a substantial threat of
immediate irreparable harm, orders and notices as the commissioner
determines to be in the public interest, including cease and desist
orders, orders to show cause, and notices. After notice and hearing, the
commissioner may enter an order of rescission, restitution, or
disgorgement, including interest at the rate of eight percent (8%) per
year, directed to a person who has violated this chapter or a rule or
order under this chapter.
(b) Upon the issuance of an order or notice without a prior hearing
by the commissioner under subsection (a), the commissioner shall
promptly notify the respondent and, if the subject of the order or notice
is a registrant, the licensee for whom the registrant is employed:
(1) that the order or notice has been issued;
(2) of the reasons the order or notice has been issued; and
(3) that upon the receipt of a written request the matter will be set
down for a hearing to commence within fifteen (15) business days
after receipt of the request unless the respondent consents to a
later date.
If a hearing is not requested and not ordered by the commissioner, an
order remains in effect until it is modified or vacated by the
commissioner. If a hearing is requested or ordered, the commissioner,
after notice of an opportunity for hearing, may modify or vacate the
order or extend it until final determination.
(c) The commissioner may deny an application for an initial or a
renewal license or registration, and may suspend or revoke the
license of a licensee or the registration of a registrant if the applicant,
the licensee, the registrant, or an ultimate equitable owner of an
applicant or of a licensee:
(1) fails to maintain the bond required under section 5 of this

chapter;
(2) has, within the most recent ten (10) years:
(A) been the subject of an adjudication or a determination by:
(i) a court with jurisdiction; or
(ii) an agency or administrator that regulates securities,
commodities, banking, financial services, insurance, real
estate, or the real estate appraisal industry;
in Indiana or in any other jurisdiction; and
(B) been found, after notice and opportunity for hearing, to
have violated the securities, commodities, banking, financial
services, insurance, real estate, or real estate appraisal laws of
Indiana or any other jurisdiction;
(3) has:
(A) been denied the right to do business in the securities,
commodities, banking, financial services, insurance, real
estate, or real estate appraisal industry; or
(B) had the person's authority to do business in the securities,
commodities, banking, financial services, insurance, real
estate, or real estate appraisal industry revoked or suspended;
by Indiana or by any other state, federal, or foreign governmental
agency or self regulatory organization;
(4) is insolvent;
(5) has violated any provision of this chapter;
(6) has knowingly filed with the commissioner any document or
statement that:
(A) contains a false representation of a material fact;
(B) fails to state a material fact; or
(C) contains a representation that becomes false after the filing
but during the term of a license or certificate of registration as
provided in subsection (i);
(7) has:
(A) been convicted, within ten (10) years before the date of the
application, renewal, or review, of any crime involving fraud
or deceit; or
(B) had a felony conviction (as defined in IC 35-50-2-1(b))
within five (5) years before the date of the application,
renewal, or review;
(8) if the person is a licensee or principal manager, has failed to
reasonably supervise the person's originators or employees to
ensure their compliance with this chapter;
(9) is on the most recent tax warrant list supplied to the
commissioner by the department of state revenue; or

(10) has engaged in dishonest or unethical practices in the loan
broker business, as determined by the commissioner.
(d) The commissioner may do either of the following:
(1) Censure:
(A) a licensee;
(B) an officer, a director, or an ultimate equitable owner of a
licensee;
(C) a registrant; or
(D) any other person;
who violates or causes a violation of this chapter.
(2) Permanently bar any person described in subdivision (1) from
being:
(A) licensed or registered under this chapter; or
(B) employed by or affiliated with a person licensed or
registered under this chapter;
if the person violates or causes a violation of this chapter.
(e) The commissioner may not enter a final order:
(1) denying, suspending, or revoking the license of a licensee or
the registration of a registrant; or
(2) imposing other sanctions;
without prior notice to all interested parties, opportunity for a hearing,
and written findings of fact and conclusions of law. However, the
commissioner may by summary order deny, suspend, or revoke a
license or certificate of registration pending final determination of any
proceeding under this section or before any proceeding is initiated
under this section. Upon the entry of a summary order, the
commissioner shall promptly notify all interested parties that the
summary order has been entered, of the reasons for the summary order,
and that upon receipt by the commissioner of a written request from a
party, the matter will be set for hearing to commence within fifteen
(15) business days after receipt of the request. If no hearing is
requested and none is ordered by the commissioner, the order remains
in effect until it is modified or vacated by the commissioner. If a
hearing is requested or ordered, the commissioner, after notice of the
hearing has been given to all interested persons and the hearing has
been held, may modify or vacate the order or extend it until final
determination.
(f) IC 4-21.5 does not apply to a proceeding under this section.
(g) If a registrant seeks to transfer the registrant's registration to
another licensee who desires to have the registrant engage in
origination activities or serve as a principal manager, whichever
applies, the registrant shall, before the registrant conducts origination

activities or serves as a principal manager for the new employer,
submit to the commissioner, on a form prescribed by the commissioner,
a registration application, as required by section 5 of this chapter.
(h) If the employment of a registrant is terminated, whether:
(1) voluntarily by the registrant; or
(2) by the licensee employing the registrant;
the licensee that employed the registrant shall, not later than five (5)
days after the termination, notify the commissioner of the termination
and the reasons for the termination.
(i) If a material fact or statement included in an application under
this chapter changes after the application has been submitted, the
applicant shall provide written notice to the commissioner of the
change. The commissioner may revoke or refuse to renew the license
or registration of any person who:
(1) is required to submit a written notice under this subsection
and fails to provide the required notice within two (2) business
days after the person discovers or should have discovered the
change; or
(2) would not qualify for licensure or registration under this
chapter as a result of the change in a material fact or statement.

SOURCE: IC 23-2-5-11; (08)HB1360.2.20. -->
SECTION 20. IC 23-2-5-11, AS AMENDED BY P.L.48-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 11. (a) The commissioner may do the following:
(1) Adopt rules under IC 4-22-2 to implement this chapter.
(2) Make investigations and examinations:
(A) in connection with any application for licensure or for
registration of a licensee or registrant or with any license or
certificate of registration already granted; or
(B) whenever it appears to the commissioner, upon the basis
of a complaint or information, that reasonable grounds exist
for the belief that an investigation or examination is necessary
or advisable for the more complete protection of the interests
of the public.
(3) Charge as costs of investigation or examination all reasonable
expenses, including a per diem prorated upon the salary of the
commissioner or employee and actual traveling and hotel
expenses. All reasonable expenses are to be paid by the party or
parties under investigation or examination if the party has violated
this chapter.
(4) Issue notices and orders, including cease and desist notices
and orders, after making an investigation or examination under
subdivision (2). The commissioner may also bring an action on

behalf of the state to enjoin a person from violating this chapter.
The commissioner shall notify the person that an order or notice
has been issued, the reasons for it, and that a hearing will be set
within fifteen (15) days after the commissioner receives a written
request from the person requesting a hearing.
(5) Sign all orders, official certifications, documents, or papers
issued under this chapter or delegate the authority to sign any of
those items to a deputy.
(6) Hold and conduct hearings.
(7) Hear evidence.
(8) Conduct inquiries with or without hearings.
(9) Receive reports of investigators or other officers or employees
of the state of Indiana or of any municipal corporation or
governmental subdivision within the state.
(10) Administer oaths, or cause them to be administered.
(11) Subpoena witnesses, and compel them to attend and testify.
(12) Compel the production of books, records, and other
documents.
(13) Order depositions to be taken of any witness residing within
or without the state. The depositions shall be taken in the manner
prescribed by law for depositions in civil actions and made
returnable to the commissioner.
(14) Order that each witness appearing under the commissioner's
order to testify before the commissioner shall receive the fees and
mileage allowances provided for witnesses in civil cases.
(15) Provide interpretive opinions or issue determinations that the
commissioner will not institute a proceeding or an action under
this chapter against a specified person for engaging in a specified
act, practice, or course of business if the determination is
consistent with this chapter. The commissioner may adopt rules
to establish fees for individuals requesting an interpretive opinion
or a determination under this subdivision. A person may not
request an interpretive opinion or a determination concerning an
activity that:
(A) occurred before; or
(B) is occurring on;
the date the opinion or determination is requested. (16) Subject to subsection (f), designate a multistate
automated licensing system and repository, established and
operated by a third party, to serve as the sole entity
responsible for:
(A) processing applications for:
(i) licenses and certificates of registration under this
chapter; and
(ii) renewals of licenses and certificates of registration
under this chapter; and
(B) performing other services that the commissioner
determines are necessary for the orderly administration of
the division's licensing and registration system.
A multistate automated licensing system and repository
described in this subdivision may include the National
Mortgage Licensing System established by the Conference of
State Bank Supervisors and the American Association of
Residential Mortgage Regulators. The commissioner may take
any action necessary to allow the division to participate in a
multistate automated licensing system and repository.
(b) If a witness, in any hearing, inquiry, or investigation conducted
under this chapter, refuses to answer any question or produce any item,
the commissioner may file a written petition with the circuit or superior
court in the county where the hearing, investigation, or inquiry in
question is being conducted requesting a hearing on the refusal. The
court shall hold a hearing to determine if the witness may refuse to
answer the question or produce the item. If the court determines that
the witness, based upon the witness's privilege against
self-incrimination, may properly refuse to answer or produce an item,
the commissioner may make a written request that the court grant use
immunity to the witness. Upon written request of the commissioner, the
court shall grant use immunity to a witness. The court shall instruct the
witness, by written order or in open court, that:
(1) any evidence the witness gives, or evidence derived from that
evidence, may not be used in any criminal proceedings against
that witness, unless the evidence is volunteered by the witness or
is not responsive to a question; and
(2) the witness must answer the questions asked and produce the
items requested.
A grant of use immunity does not prohibit evidence that the witness
gives in a hearing, investigation, or inquiry from being used in a
prosecution for perjury under IC 35-44-2-1. If a witness refuses to give
the evidence after the witness has been granted use immunity, the court
may find the witness in contempt.
(c) In any prosecution, action, suit, or proceeding based upon or
arising out of this chapter, the commissioner may sign a certificate
showing compliance or noncompliance with this chapter by any person.
This shall constitute prima facie evidence of compliance or

noncompliance with this chapter and shall be admissible in evidence
in any action at law or in equity to enforce this chapter.
(d) If:
(1) a person disobeys any lawful:
(A) subpoena issued under this chapter; or
(B) order or demand requiring the production of any books,
accounts, papers, records, documents, or other evidence or
information as provided in this chapter; or
(2) a witness refuses to:
(A) appear when subpoenaed;
(B) testify to any matter about which the witness may be
lawfully interrogated; or
(C) take or subscribe to any oath required by this chapter;
the circuit or superior court of the county in which the hearing, inquiry,
or investigation in question is held, if demand is made or if, upon
written petition, the production is ordered to be made, or the
commissioner or a hearing officer appointed by the commissioner, shall
compel compliance with the lawful requirements of the subpoena,
order, or demand, compel the production of the necessary or required
books, papers, records, documents, and other evidence and
information, and compel any witness to attend in any Indiana county
and to testify to any matter about which the witness may lawfully be
interrogated, and to take or subscribe to any oath required.
(e) If a person fails, refuses, or neglects to comply with a court order
under this section, the person shall be punished for contempt of court. (f) The commissioner's authority to designate a multistate
automated licensing system and repository under subsection
(a)(16) is subject to the following:
(1) The commissioner may not require any person exempt
from licensure or registration under this chapter, or any
employee or agent of an exempt person, to:
(A) submit information to; or
(B) participate in;
the multistate automated licensing system and repository.
(2) The commissioner may require a person required under
this chapter to submit information to the multistate
automated licensing system and repository to pay a processing
fee considered reasonable by the commissioner.

SOURCE: IC 23-2-5-18; (08)HB1360.2.21. -->
SECTION 21. IC 23-2-5-18 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 18. (a) Each loan
broker agreement shall be given an account number. Each licensee person licensed or required to be licensed under this chapter shall

keep and maintain the following records or their electronic equivalent:
(1) A file for each borrower or proposed borrower that contains
the following:
(A) The name and address of the borrower or any proposed
borrower.
(B) A copy of the signed loan broker agreement.
(C) A copy of any other papers or instruments used in
connection with the loan broker agreement and signed by the
borrower or any proposed borrower.
(D) If a loan was obtained for the borrower, the name and
address of the creditor.
(E) If a loan is accepted by the borrower, a copy of the loan
agreement.
(F) The amount of the loan broker's fee that the borrower has
paid. If there is an unpaid balance, the status of any collection
efforts.
(2) All receipts from or for the account of borrowers or any
proposed borrowers and all disbursements to or for the account of
borrowers or any proposed borrowers, recorded so that the
transactions are readily identifiable.
(3) A general ledger that shall be posted at least monthly, and a
trial balance sheet and profit and loss statement prepared within
thirty (30) days of the commissioner's request for the information.
(4) A sample of:
(A) all advertisements, pamphlets, circulars, letters, articles,
or communications published in any newspaper, magazine, or
periodical;
(B) scripts of any recording, radio, or television
announcement; and
(C) any sales kits or literature;
to be used in solicitation of borrowers.
(b) The records listed in subsection (a) shall be kept for a period of
two (2) years in the licensee's loan broker's principal office and must
be separate or readily identifiable from the records of any other
business that is conducted in the office of the loan broker. (c) If a breach of the security of any records:
(1) maintained by a loan broker under this section; and
(2) containing the unencrypted, unredacted personal
information of one (1) or more borrowers or prospective
borrowers;
occurs, the loan broker is subject to the disclosure requirements
under IC 24-4.9-3, unless the loan broker is exempt from the

disclosure requirements under IC 24-4.9-3-4.
(d) A person who is:
(1) licensed or required to be licensed under this chapter; or
(2) registered or required to be registered under this chapter;
may not dispose of the unencrypted, unredacted personal
information of one (1) or more borrowers or prospective
borrowers without first shredding, incinerating, mutilating,
erasing, or otherwise rendering the information illegible or
unusable.

SOURCE: IC 23-2-5-19; (08)HB1360.2.22. -->
SECTION 22. IC 23-2-5-19, AS AMENDED BY P.L.230-2007,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 19. (a) The following persons are exempt from the
requirements of sections 4, 5, 6, 9, 17, 18, and 21 of this chapter:
(1) Any attorney while engaging in the practice of law.
(2) Any certified public accountant, public accountant, or
accountant practitioner holding a certificate or registered under
IC 25-2.1 while performing the practice of accountancy (as
defined by IC 25-2.1-1-10).
(3) Any person licensed as a real estate broker or salesperson
under IC 25-34.1 to the extent that the person is rendering loan
related services in the ordinary course of a transaction in which a
license as a real estate broker or salesperson is required.
(4) Any broker-dealer, agent, or investment advisor registered
under IC 23-19.
(5) Any person that:
(A) procures;
(B) promises to procure; or
(C) assists in procuring;
a loan that is not subject to the Truth in Lending Act (15 U.S.C.
1601 through 1667e).
(6) Any community development corporation (as defined in
IC 4-4-28-2) acting as a subrecipient of funds from the Indiana
housing and community development authority established by
IC 5-20-1-3.
(7) The Indiana housing and community development authority.(8)Subjecttosubsection(e),andexceptasprovidedinsubsection(f),anypersonauthorizedto:(A)sellandservicealoanfortheFederalNationalMortgageAssociationortheFederalHomeLoanMortgageAssociation;(B)issuesecuritiesbackedbytheGovernmentNationalMortgageAssociation;(C)makeloansinsuredbytheUnitedStatesDepartmentof

HousingandUrbanDevelopmentortheUnitedStatesDepartmentofAgricultureRuralHousingService;(D)actasasupervisedlenderornonsupervisedautomaticlenderoftheUnitedStatesDepartmentofVeteransAffairs;or(E)actasacorrespondentofloansinsuredbytheUnitedStatesDepartmentofHousingandUrbanDevelopment,ifthepersonclosesatleasttwenty-five(25)suchinsuredloansinIndianaduringeachcalendaryear.(9) (8) Any person who is a creditor, or proposed to be a creditor,
for any loan.
(b) As used in this chapter, "bona fide third party fee" includes fees
for the following:
(1) Credit reports, investigations, and appraisals performed by a
person who holds a license or certificate as a real estate appraiser
under IC 25-34.1-8.
(2) If the loan is to be secured by real property, title examinations,
an abstract of title, title insurance, a property survey, and similar
purposes.
(3) The services provided by a loan broker in procuring possible
business for a lending institution if the fees are paid by the
lending institution.
(c) As used in this section, "successful procurement of a loan"
means that a binding commitment from a creditor to advance money
has been received and accepted by the borrower.
(d) The burden of proof of any exemption or classification provided
in this chapter is on the party claiming the exemption or classification.(e)Apersonclaiminganexemptionundersubsection(a)(8)shall,asaconditiontoreceivingormaintainingtheexemption,fileanoticeeverytwenty-four(24)monthsonaformacceptabletothecommissioner.Thenoticerequiredunderthissubsectionmust:(1)providethenameandbusinessaddressofeachoriginatoremployedbythepersontooriginateloansinIndiana;(2)includeallotherinformationrequiredbythecommissioner;and(3)beaccompaniedbyafeeoffourhundreddollars($400).Ifanyinformationincludedinanoticeunderthissubsectionchangesafterthenoticehasbeensubmitted,thepersonshallprovidewrittennoticetothecommissionerofthechange.Thecommissioner'sreceiptofanoticeunderthissubsectionshallnotbeconsideredtobeadeterminationorconfirmationbythecommissionerofthevalidityoftheclaimedexemption.(f)Anexemptiondescribedinsubsection(a)(8)doesnotextendto:

SOURCE: IC 23-2-5-20; (08)HB1360.2.23. -->
SECTION 23. IC 23-2-5-20 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 20. (a) As used in this
section, "creditworthiness", with respect to a prospective
borrower, means those factors likely to affect the prospective
borrower's ability to repay a loan at the loan's fully indexed rate,
including the following:
(1) The prospective borrower's present and future:
(A) income, not including overtime payments, seasonal
compensation, or other irregular income;
(B) expenses, including property taxes and insurance
payments owed in connection with the property that is the
subject of the loan;
(C) assets; and
(D) liabilities.
(2) The prospective borrower's credit history.
(3) Any other factor likely to affect the prospective borrower's
ability to repay the loan at the loan's fully indexed rate.
(b) As used in this section, "fully indexed rate means:
(1) for a fixed rate mortgage transaction in which the interest
rate will not vary during the term of the mortgage, the rate as
of the date of closing;
(2) for a mortgage transaction in which the interest varies
according to an index, the sum of the index rate as of the date
of closing plus the maximum margin permitted at any time
under the mortgage agreement; or
(3) for all other mortgage transactions in which the rate may
vary at any time during the term of the mortgage, the
maximum rate that may be charged during the term of the
mortgage. (c) For purposes of this section, a person conducts a "reasonable
inquiry" into a prospective borrower's creditworthiness if the
person:
(1) obtains a consumer report (as defined in IC 24-5-24-2) or
other information maintained by a consumer reporting
agency (as defined in IC 24-5-24-3) with respect to the
prospective borrower; and
(2) obtains information about the prospective borrower

through:
(A) a current or past employer of the prospective
borrower;
(B) public records; or
(C) any other legal or commercially reasonable means. (d) A person shall not, in connection with a contract for the services
of a loan broker, either directly or indirectly, do any of the following:
(1) Employ any device, scheme, or artifice to defraud.
(2) Make any untrue statements of a material fact or omit to state
a material fact necessary in order to make the statements made, in
the light of circumstances under which they are made, not
misleading.
(3) Engage in any act, practice, or course of business that operates
or would operate as a fraud or deceit upon any person.
(4) Collect or solicit any consideration, except a bona fide third
party fee, in connection with a loan until the loan has been closed. (5) Receive any funds if the person knows that the funds were
generated as a result of a fraudulent act.
(6) File or cause to be filed with a county recorder any
document that the person knows:
(A) contains:
(i) a misstatement; or
(ii) an untrue statement;
of a material fact; or
(B) omits a statement of a material fact that is necessary to
make the statements that are made, in the light of
circumstances under which they are made, not misleading.
(7) Knowingly release or disclose the unencrypted, unredacted
personal information of one (1) or more borrowers or
prospective borrowers, unless the personal information is:
(A) included as part of:
(i) an application form; or
(ii) a document that is used in connection with an
application process or an enrollment process;
(B) used to obtain a consumer report (as defined in
IC 24-5-24-2) for an applicant for credit; or
(C) used to establish, amend, or terminate an account, a
contract, or a policy, or to confirm the accuracy of the
personal information.
However, personal information allowed to be disclosed under
this subdivision may not be printed in whole or in part on a
postcard or other mailer that does not require an envelope, or

in a manner that makes the personal information visible on an
envelope or a mailer without the envelope or mailer being
opened.
(8) Engage in any reckless or negligent activity allowing the
release or disclosure of the unencrypted, unredacted personal
information of one (1) or more borrowers or prospective
borrowers. An activity described in this subdivision includes
an action prohibited by section 18(d) of this chapter.
(9) Recommend a loan to, or procure a loan on behalf of, a
prospective borrower without first conducting a reasonable
inquiry concerning the prospective borrower's
creditworthiness.
(e) A person who commits an act described in subsection (d) is
subject to sections 10, 14, 15, and 16 of this chapter.

SOURCE: IC 23-2-5-22; (08)HB1360.2.24. -->
SECTION 24. IC 23-2-5-22, AS ADDED BY P.L.48-2006,
SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 22. (a) An appeal may be taken by:
(1) any loanbrokerorprincipalupon person whose application
for registrationforaloanbroker an initial or a renewal license
under this chapter is granted or denied, from any final order of
the commissioner concerning the application; orregistration;
(2) any applicant for initial or renewed registration as a loanbroker principal manager or an originator, from any final order
of the commissioner affecting the application; orregistrationasaloanbrokerororiginator;
(3) any person against whom a civil penalty is imposed under
section 14(a) of this chapter, from the final order of the
commissioner imposing the civil penalty; or
(4) any person who is named as a respondent, from any final order
issued by the commissioner under section 10 or 11 of this chapter;
to the Marion circuit court or to the circuit or superior court of the
county where the person taking the appeal resides or maintains a place
of business.
(b) Not later than twenty (20) days after the entry of the order, the
commissioner shall be served with:
(1) a written notice of the appeal stating the court to which the
appeal will be taken and the grounds upon which a reversal of the
final order is sought;
(2) a demand in writing from the appellant for a certified
transcript of the record and of all papers on file in the
commissioner's office affecting or relating to the order; and
(3) a bond in the penal sum of five hundred dollars ($500) to the

state of Indiana with sufficient surety to be approved by the
commissioner, conditioned upon the faithful prosecution of the
appeal to final judgment and the payment of all costs that are
adjudged against the appellant.
(c) Not later than ten (10) days after the commissioner is served
with the items listed in subsection (b), the commissioner shall make,
certify, and deliver to the appellant the transcript, and the appellant
shall, not later than five (5) days after the date the appellant receives
the transcript, file the transcript and a copy of the notice of appeal with
the clerk of the court. The notice of appeal serves as the appellant's
complaint. The commissioner may appear and file any motion or
pleading and form the issue. The cause shall be entered on the trial
calendar for trial de novo and given precedence over all matters
pending in the court.
(d) The court shall receive and consider any pertinent oral or written
evidence concerning the order of the commissioner from which the
appeal is taken. If the order of the commissioner is reversed, the court
shall in its mandate specifically direct the commissioner as to the
commissioner's further action in the matter. The commissioner is not
barred from revoking or altering the order for any proper cause that
accrues or is discovered after the order is entered. If the order is
affirmed, the appellant is not barred after thirty (30) days from the date
the order is affirmed from filing a new application if the application is
not otherwise barred or limited. During the pendency of the appeal, the
order from which the appeal is taken is not suspended but remains in
effect unless otherwise ordered by the court. An appeal may be taken
from the judgment of the court on the same terms and conditions as an
appeal is taken in civil actions.

SOURCE: IC 24-4.5-1-301; (08)HB1360.2.25. -->
SECTION 25. IC 24-4.5-1-301, AS AMENDED BY P.L.57-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Sec. 301. General Definitions . In addition to
definitions appearing in subsequent chapters in this article:
(1) "Agreement" means the bargain of the parties in fact as found in
their language or by implication from other circumstances, including
course of dealing or usage of trade or course of performance.
(2) "Agricultural purpose" means a purpose related to the
production, harvest, exhibition, marketing, transportation, processing,
or manufacture of agricultural products by a natural person who
cultivates, plants, propagates, or nurtures the agricultural products;
"Agricultural products" includes agricultural, horticultural, viticultural,
and dairy products, livestock, wildlife, poultry, bees, forest products,
fish and shellfish, and any and all products raised or produced on farms

and any processed or manufactured products thereof.
(3) "Average daily balance" means the sum of each of the daily
balances in a billing cycle divided by the number of days in the billing
cycle, and if the billing cycle is a month, the creditor may elect to treat
the number of days in each billing cycle as thirty (30).
(4) "Closing costs" with respect to a debt secured by an interest in
land includes:
(a) fees or premiums for title examination, title insurance, or
similar purposes, including surveys;
(b) fees for preparation of a deed, settlement statement, or other
documents;
(c) escrows for future payments of taxes and insurance;
(d) fees for notarizing deeds and other documents;
(e) appraisal fees; and
(f) credit reports.
(5) "Conspicuous": A term or clause is conspicuous when it is so
written that a reasonable person against whom it is to operate ought to
have noticed it.
(6) "Consumer credit" means credit offered or extended to a
consumer primarily for a personal, family, or household purpose.
(7) "Credit" means the right granted by a creditor to a debtor to
defer payment of debt or to incur debt and defer its payment.
(8) "Creditor" means a person:
(a) who regularly engages in the extension of consumer credit that
is subject to a credit service charge or loan finance charge, as
applicable, or is payable by written agreement in more than
four (4) installments (not including a down payment); and
(b) to whom the obligation is initially payable, either on the face
of the note or contract, or by agreement when there is not a note
or contract.
(9) "Earnings" means compensation paid or payable for personal
services, whether denominated as wages, salary, commission, bonus,
or otherwise, and includes periodic payments under a pension or
retirement program.
(10) "Lender credit card or similar arrangement" means an
arrangement or loan agreement, other than a seller credit card, pursuant
to which a lender gives a debtor the privilege of using a credit card,
letter of credit, or other credit confirmation or identification in
transactions out of which debt arises:
(a) by the lender's honoring a draft or similar order for the
payment of money drawn or accepted by the debtor;
(b) by the lender's payment or agreement to pay the debtor's

obligations; or
(c) by the lender's purchase from the obligee of the debtor's
obligations.
(11) "Official fees" means:
(a) fees and charges prescribed by law which actually are or will
be paid to public officials for determining the existence of or for
perfecting, releasing, or satisfying a security interest related to a
consumer credit sale, consumer lease, or consumer loan; or
(b) premiums payable for insurance in lieu of perfecting a security
interest otherwise required by the creditor in connection with the
sale, lease, or loan, if the premium does not exceed the fees and
charges described in paragraph (a) which would otherwise be
payable.
(12) "Organization" means a corporation, a government or
governmental subdivision, or an agency, a trust, an estate, a
partnership, a limited liability company, a cooperative, or an
association.
(13) "Payable in installments" means that payment is required or
permitted by written agreement to be made in more than four (4)
installments not including a down payment.
(14) "Person" includes a natural person or an individual and an
organization.
(15) "Person related to" with respect to an individual means:
(a) the spouse of the individual;
(b) a brother, brother-in-law, sister, sister-in-law of the individual;
(c) an ancestor or lineal descendants of the individual or the
individual's spouse; and
(d) any other relative, by blood or marriage, of the individual or
the individual's spouse who shares the same home with the
individual.
"Person related to" with respect to an organization means:
(a) a person directly or indirectly controlling, controlled by, or
under common control with the organization;
(b) an officer or director of the organization or a person
performing similar functions with respect to the organization or
to a person related to the organization;
(c) the spouse of a person related to the organization; and
(d) a relative by blood or marriage of a person related to the
organization who shares the same home with the person.
(16) "Presumed" or "presumption" means that the trier of fact must
find the existence of the fact presumed unless and until evidence is
introduced which would support a finding of its nonexistence.

(17) "Mortgage transaction" means a transaction consumer credit
sale or consumer loan in which a first mortgage, deed of trust, or a
land contract which constitutes a first lien is created or retained against
land upon which there is a dwelling that is or will be used by the
debtor primarily for personal, family, or household purposes.
(18) "Regularly engaged" means a person who extends consumer
credit more than:
(a) twenty-five (25) times; or
(b) five (5) times for transactions secured by a dwelling;
in the preceding calendar year. If a person did not meet these numerical
standards in the preceding calendar year, the numerical standards shall
be applied to the current calendar year.
(19) "Seller credit card" means an arrangement which gives to a
buyer or lessee the privilege of using a credit card, letter of credit, or
other credit confirmation or identification for the purpose of purchasing
or leasing goods or services from that person, a person related to that
person, or from that person and any other person. The term includes a
card that is issued by a person, that is in the name of the seller, and that
can be used by the buyer or lessee only for purchases or leases at
locations of the named seller.
(20) "Supervised financial organization" means a person, other than
an insurance company or other organization primarily engaged in an
insurance business:
(a) organized, chartered, or holding an authorization certificate
under the laws of a state or of the United States which authorizes
the person to make loans and to receive deposits, including a
savings, share, certificate, or deposit account; and
(b) subject to supervision by an official or agency of a state or of
the United States.
(21) "Mortgage servicer" means the last person to whom a
mortgagor or the mortgagor's successor in interest has been instructed
by a mortgagee to send payments on a loan secured by a mortgage.
(22) "Affiliate", with respect to any person subject to this article,
means a person that, directly or indirectly, through one (1) or more
intermediaries:
(a) controls;
(b) is controlled by; or
(c) is under common control with;
the person subject to this article. (23) "Dwelling" means a residential structure that contains one
(1) to four (4) units, regardless of whether the structure is attached
to real property. The term includes an individual:
(a) condominium unit;
(b) cooperative unit;
(c) mobile home; or
(d) trailer;
that is used as a residence.

SOURCE: IC 24-4.5-2-104; (08)HB1360.2.26. -->
SECTION 26. IC 24-4.5-2-104 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 104. (1) Except
as provided in subsection (2), "consumer credit sale" is a sale of goods,
services, or an interest in land in which:
(a) credit is granted by a person who regularly engages as a seller
in credit transactions of the same kind;
(b) the buyer is a person other than an organization;
(c) the goods, services, or interest in land are purchased primarily
for a personal, family, or household purpose;
(d) either the debt is payable in installments or a credit service
charge is made; and
(e) with respect to a sale of goods or services, either: (i) the amount financed does not exceed fifty thousand dollars
($50,000); or (ii) the debt is secured by a mortgage transaction or by
personal property used or expected to be used as theprincipal a dwelling of the buyer.
(2) Unless the sale is made subject to this article by agreement
(IC 24-4.5-2-601), "consumer credit sale" does not include (a) a sale in
which the seller allows the buyer to purchase goods or services
pursuant to a lender credit card or similar arrangement. or(b)exceptasprovidedwithrespecttodisclosure(IC24-4.5-2-301),debtors'remedies(IC24-4.5-5-201),providingpayoffamounts(IC24-4.5-2-209),andpowersandfunctionsofthedepartment(IC24-4.5-6-101),asaleofaninterestinlandwhichisamortgagetransaction(asdefinedinIC24-4.5-1-301(17)).

SOURCE: IC 24-4.5-2-105; (08)HB1360.2.27. -->
SECTION 27. IC 24-4.5-2-105 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 105. Definitions:
"Goods"; "Merchandise Certificate"; "Services"; "Sale of Goods"; "Sale
of Services"; "Sale of an Interest in Land"; "Precomputed".
(1) "Goods" includes goods not in existence at the time the
transaction is entered into and merchandise certificates, but excludes
money, chattel paper, documents of title, and instruments.
(2) "Merchandise certificate" means a writing issued by a seller not
redeemable in cash and usable in its face amount in lieu of cash in
exchange for goods or services.
(3) "Services" includes (a) work, labor, and other personal services,

(b) privileges with respect to transportation, hotel and restaurant
accommodations, education, entertainment, recreation, physical
culture, hospital accommodations, funerals, cemetery accommodations,
and the like, and (c) insurance provided by a person other than the
insurer.
(4) "Sale of goods" includes any agreement in the form of a bailment
or lease of goods if the bailee or lessee agrees to pay as compensation
for use a sum substantially equivalent to or in excess of the aggregate
value of the goods involved and it is agreed that the bailee or lessee
will become, or for no other or a nominal consideration has the option
to become, the owner of the goods upon full compliance with his the
bailee's or lessee's obligations under the agreement.
(5) "Sale of services" means furnishing or agreeing to furnish
services and includes making arrangements to have services furnished
by another.
(6) "Sale of an interest in land" includes a mortgage transaction or
a lease in which the mortgagor or the lessee has an option to purchase
the interest and all or a substantial part of the rental or other payments
previously made by him the mortgagor or the lessee are applied to the
purchase price.
(7) A sale, refinancing, or consolidation is "precomputed" if the debt
is expressed as a sum comprising the amount financed and the amount
of the credit service charge computed in advance.

SOURCE: IC 24-4.5-2-107; (08)HB1360.2.28. -->
SECTION 28. IC 24-4.5-2-107 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 107. Definition;
"Seller" - Except as otherwise provided, "seller" means a person
regularly engaged as a creditor in making consumer credit sales.
The term includes an assignee of the seller's right to payment but use
of the term does not in itself impose on an assignee any obligation of
the seller with respect to events occurring before the assignment.

SOURCE: IC 24-4.5-2-201; (08)HB1360.2.29. -->
SECTION 29. IC 24-4.5-2-201, AS AMENDED BY P.L.57-2006,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Sec. 201. Credit Service Charge for Consumer
Credit Sales other than Revolving Charge Accounts _ (1) With respect
to a consumer credit sale, other than a sale pursuant to a revolving
charge account, a seller may contract for and receive a credit service
charge not exceeding that permitted by this section.
(2) The credit service charge, calculated according to the actuarial
method, may not exceed the equivalent of the greater of either of the
following:
(a) the total of:
(i) thirty-six percent (36%) per year on that part of the unpaid

balances of the amount financed which is three hundred
dollars ($300) or less;
(ii) twenty-one percent (21%) per year on that part of the
unpaid balances of the amount financed which is more than
three hundred dollars ($300) but does not exceed one thousand
dollars ($1,000); and
(iii) fifteen percent (15%) per year on that part of the unpaid
balances of the amount financed which is more than one
thousand dollars ($1,000); or
(b) twenty-one percent (21%) per year on the unpaid balances of
the amount financed.
(3) This section does not limit or restrict the manner of contracting
for the credit service charge, whether by way of add-on, discount, or
otherwise, so long as the rate of the credit service charge does not
exceed that permitted by this section. If the sale is precomputed:
(a) the credit service charge may be calculated on the assumption
that all scheduled payments will be made when due; and
(b) the effect of prepayment is governed by the provisions on
rebate upon prepayment (IC 24-4.5-2-210).
(4) For the purposes of this section, the term of a sale agreement
commences with the date the credit is granted or, if goods are delivered
or services performed more than thirty (30) days after that date, with
the date of commencement of delivery or performance except as set
forth below:
(a) Delays attributable to the customer. Where the customer
requests delivery after the thirty (30) day period or where delivery
occurs after the thirty (30) day period for a reason attributable to
the customer (including but not limited to failure to close on a
residence or failure to obtain lease approval), the term of the sale
agreement shall commence with the date credit is granted.
(b) Partial Deliveries. Where any portion of the order has been
delivered within the thirty (30) day period, the term of the sale
agreement shall commence with the date credit is granted.
Differences in the lengths of months are disregarded and a day may be
counted as one-thirtieth (1/30) of a month. Subject to classifications
and differentiations the seller may reasonably establish, a part of a
month in excess of fifteen (15) days may be treated as a full month if
periods of fifteen (15) days or less are disregarded and that procedure
is not consistently used to obtain a greater yield than would otherwise
be permitted.
(5) Subject to classifications and differentiations the seller may
reasonably establish, the seller may make the same credit service

charge on all amounts financed within a specified range. A credit
service charge so made does not violate subsection (2) if:
(a) when applied to the median amount within each range, it does
not exceed the maximum permitted by subsection (2); and
(b) when applied to the lowest amount within each range, it does
not produce a rate of credit service charge exceeding the rate
calculated according to paragraph (a) by more than eight percent
(8%) of the rate calculated according to paragraph (a).
(6) Notwithstanding subsection (2), the seller may contract for and
receive a minimum credit service charge of not more than thirty dollars
($30). The minimum credit service charge allowed under this
subsection may be imposed only if:
(a) the borrower debtor prepays in full a consumer credit sale,
refinancing, or consolidation, regardless of whether the sale,
refinancing, or consolidation is precomputed;
(b) the sale, refinancing, or consolidation prepaid by the borrower debtor is subject to a credit service charge that:
(i) is contracted for by the parties; and
(ii) does not exceed the rate prescribed in subsection (2); and
(c) the credit service charge earned at the time of prepayment is
less than the minimum credit service charge contracted for under
this subsection.
(7) The amounts of three hundred dollars ($300) and one thousand
dollars ($1,000) in subsection (2) are subject to change pursuant to the
provisions on adjustment of dollar amounts (IC 24-4.5-1-106).
(8) The amount of thirty dollars ($30) in subsection (6) is subject to
change under the provisions on adjustment of dollar amounts
(IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
Reference Base Index to be used under this subsection is the Index for
October 1992.

SOURCE: IC 24-4.5-2-209; (08)HB1360.2.30. -->
SECTION 30. IC 24-4.5-2-209 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 209. Right to Prepay -
(1) Subject to the provisions on rebate upon prepayment
(IC 24-4.5-2-210), the buyer may prepay in full the unpaid balance of
a consumer credit sale, refinancing, or consolidation at any time
without penalty.
(2) At the time of prepayment of a credit sale not subject to the
provisions of rebate upon prepayment (IC 24-4.5-2-210), the total
credit service charge, including the prepaid credit service charge, may
not exceed the maximum charge allowed under this chapter for the
period the credit sale was in effect.
(3) The creditor or mortgage servicer shall provide an accurate

payoff of the consumer credit sale to the debtor within ten (10)
calendar days after the creditor or mortgage servicer receives the
debtor's written request for the accurate consumer credit sale payoff
amount. A creditor or mortgage servicer who fails to provide the
accurate consumer credit sale payoff amount is liable for:
(A) one hundred dollars ($100) if an accurate consumer credit
sale payoff amount is not provided by the creditor or mortgage
servicer within ten (10) calendar days after the creditor or
mortgage servicer receives the debtor's first written request;
and
(B) the greater of:
(i) one hundred dollars ($100); or
(ii) the credit service charge that accrues on the sale from
the date the creditor or mortgage servicer receives the first
written request until the date on which the accurate
consumer credit sale payoff amount is provided;
if an accurate consumer credit sale payoff amount is not
provided by the creditor or mortgage servicer within ten (10)
calendar days after the creditor or mortgage servicer receives
the debtor's second written request, and the creditor or
mortgage servicer failed to comply with clause (A).
A liability under this subsection is an excess charge under
IC 24-4.5-5-202. (4) This subsection applies to a consumer credit sale that is a
mortgage transaction and with respect to which any installment or
minimum payment due is delinquent for at least ten (10) days. The
creditor, servicer, or the creditor's agent shall acknowledge a
written offer made in connection with a proposed short sale not
later than ten (10) business days after the date of the offer. The
creditor, servicer, or creditor's agent is required to acknowledge
a written offer made in connection with a proposed short sale from
a third party acting on behalf of the debtor only if the debtor has
provided written authorization for the creditor, servicer, or
creditor's agent to do so. Not later than twenty (20) business days
after receipt of an offer under this subsection, the creditor,
servicer, or creditor's agent shall respond to the offer with an
acceptance or a rejection of the offer. As used in this subsection,
"short sale" means a transaction in which the property that is the
subject of a mortgage transaction is sold for an amount that is less
than the amount of the debtor's outstanding obligation under the
mortgage transaction. A creditor or mortgage servicer that fails to
respond to an offer within the time prescribed by this subsection is

liable under the terms set forth in subsection (3), as if the creditor
or mortgage servicer had failed to provide a consumer credit sale
payoff amount.

SOURCE: IC 24-4.5-3-104; (08)HB1360.2.32. -->
SECTION 32. IC 24-4.5-3-104 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 104. Exceptwithrespecttoaloanprimarilysecuredbyaninterestinland(IC 24-4.5-3-105), "Consumer loan" is a loan made by a person
regularly engaged in the business of making loans in which:
(a) the debtor is a person other than an organization;
(b) the debt is primarily for a personal, family, or household
purpose;
(c) either the debt is payable in installments or a loan finance
charge is made; and
(d) either:
(i) the principal does not exceed fifty thousand dollars
($50,000); or
(ii) the debt is secured by an interest in land or by personal
property used or expected to be used as the principal dwelling
of the debtor.

SOURCE: IC 24-4.5-3-107; (08)HB1360.2.33. -->
SECTION 33. IC 24-4.5-3-107 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 107. Definitions:
"Lender"; "Precomputed"; "Principal" . (1) Except as otherwise
provided, "lender" means a person regularly engaged in making
consumer loans. The term includes an assignee of the lender's right
to payment but use of the term does not in itself impose on an assignee
any obligation of the lender with respect to events occurring before the
assignment.
(2) A loan, refinancing, or consolidation is "precomputed" if the
debt is expressed as a sum comprising the principal and the amount of
the loan finance charge computed in advance.
(3) "Principal" of a loan means the total of:
(a) the net amount paid to, receivable by, or paid or payable for
the account of the debtor;
(b) the amount of any discount excluded from the loan finance
charge (subsection (2) of 24-4.5-3-109); and
(c) to the extent that payment is deferred:
(i) amounts actually paid or to be paid by the lender for
registration, certificate of title, or license fees if not included
in (a); and
(ii) additional charges permitted by this Chapter
(24-4.5-3-202).

SOURCE: IC 24-4.5-3-201; (08)HB1360.2.34. -->
SECTION 34. IC 24-4.5-3-201, AS AMENDED BY P.L.57-2006,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Sec. 201. Loan Finance Charge for Consumer
Loans other than Supervised Loans_(1) Except as provided in
subsections (6) and (8), with respect to a consumer loan other than a
supervised loan (IC 24-4.5-3-501), a lender may contract for a loan
finance charge, calculated according to the actuarial method, not
exceeding twenty-one percent (21%) per year on the unpaid balances
of the principal.
(2) This section does not limit or restrict the manner of contracting
for the loan finance charge, whether by way of add-on, discount, or
otherwise, so long as the rate of the loan finance charge does not
exceed that permitted by this section. If the loan is precomputed:
(a) the loan finance charge may be calculated on the assumption
that all scheduled payments will be made when due; and
(b) the effect of prepayment is governed by the provisions on
rebate upon prepayment (IC 24-4.5-3-210).
(3) For the purposes of this section, the term of a loan commences
with the date the loan is made. Differences in the lengths of months are
disregarded, and a day may be counted as one-thirtieth (1/30) of a
month. Subject to classifications and differentiations the lender may
reasonably establish, a part of a month in excess of fifteen (15) days
may be treated as a full month if periods of fifteen (15) days or less are
disregarded and if that procedure is not consistently used to obtain a
greater yield than would otherwise be permitted. For purposes of
computing average daily balances, the creditor may elect to treat all
months as consisting of thirty (30) days.
(4) With respect to a consumer loan made pursuant to a revolving

loan account:
(a) the loan finance charge shall be deemed not to exceed the
maximum annual percentage rate if the loan finance charge
contracted for and received does not exceed a charge in each
monthly billing cycle which is one and three-fourths percent (1
3/4%) of an amount no greater than:
(i) the average daily balance of the debt;
(ii) the unpaid balance of the debt on the same day of the
billing cycle; or
(iii) subject to subsection (5), the median amount within a
specified range within which the average daily balance or the
unpaid balance of the debt, on the same day of the billing
cycle, is included; for the purposes of this subparagraph and
subparagraph (ii), a variation of not more than four (4) days
from month to month is "the same day of the billing cycle";
(b) if the billing cycle is not monthly, the loan finance charge
shall be deemed not to exceed the maximum annual percentage
rate if the loan finance charge contracted for and received does
not exceed a percentage which bears the same relation to
one-twelfth (1/12) the maximum annual percentage rate as the
number of days in the billing cycle bears to thirty (30); and
(c) notwithstanding subsection (1), if there is an unpaid balance
on the date as of which the loan finance charge is applied, the
lender may contract for and receive a charge not exceeding fifty
cents ($0.50) if the billing cycle is monthly or longer, or the pro
rata part of fifty cents ($0.50) which bears the same relation to
fifty cents ($0.50) as the number of days in the billing cycle bears
to thirty (30) if the billing cycle is shorter than monthly, but no
charge may be made pursuant to this paragraph if the lender has
made an annual charge for the same period as permitted by the
provisions on additional charges (paragraph (c) of subsection (1)
of IC 24-4.5-3-202).
(5) Subject to classifications and differentiations, the lender may
reasonably establish and make the same loan finance charge on all
amounts financed within a specified range. A loan finance charge does
not violate subsection (1) if:
(a) when applied to the median amount within each range, it does
not exceed the maximum permitted by subsection (1); and
(b) when applied to the lowest amount within each range, it does
not produce a rate of loan finance charge exceeding the rate
calculated according to paragraph (a) by more than eight percent
(8%) of the rate calculated according to paragraph (a).

(6) With respect to a consumer loan not made pursuant to a
revolving loan account, the lender may contract for and receive a
minimum loan finance charge of not more than thirty dollars ($30). The
minimum loan finance charge allowed under this subsection may be
imposed only if:
(a) the borrower debtor prepays in full a consumer loan,
refinancing, or consolidation, regardless of whether the loan,
refinancing, or consolidation is precomputed;
(b) the loan, refinancing, or consolidation prepaid by the borrower debtor is subject to a loan finance charge that:
(i) is contracted for by the parties; and
(ii) does not exceed the rate prescribed in subsection (1); and
(c) the loan finance charge earned at the time of prepayment is
less than the minimum loan finance charge contracted for under
this subsection.
(7) The amount of thirty dollars ($30) in subsection (6) is subject to
change under the provisions on adjustment of dollar amounts
(IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the
Reference Base Index to be used under this subsection is the Index for
October 1992.
(8) In addition to the loan finance charge provided for in this
section, a lender may contract for the following:
(a) With respect to a consumer loan that is not made under a
revolving loan account, a loan origination fee of not more than
two percent (2%) of the loan amount.
(b) With respect to a consumer loan that is made under a
revolving loan account, a loan origination fee of not more than
two percent (2%) of the line of credit that was contracted for.
(9) The charges provided for in subsection (8):
(a) are not subject to refund or rebate;
(b) are not permitted if a lender makes a settlement charge under
IC 24-4.5-3-202(d)(ii); and
(c) are limited to two percent (2%) of the part of the loan that
does not exceed two thousand dollars ($2,000), if the loan is not
primarily secured by an interest in land.
Notwithstanding subdivision (a), if a lender retains any part of a loan
origination fee charged on a loan that is paid in full by a new loan from
the same lender within three (3) months after the date of the prior loan,
the lender may charge a loan origination fee only on that part of the
new loan not used to pay the amount due on the prior loan, or in the
case of a revolving loan, the lender may charge a loan origination fee
only on the difference between the amount of the existing credit line

and the increased credit line. This subsection does not prohibit a lender
from contracting for and receiving a fee for preparing deeds,
mortgages, reconveyance, and similar documents under
IC 24-4.5-3-202(d)(ii), in addition to the charges provided for in
subsection (8).

SOURCE: IC 24-4.5-3-209; (08)HB1360.2.35. -->
SECTION 35. IC 24-4.5-3-209 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JANUARY 1, 2009]: Sec. 209. Right to
Prepay - (1) Subject to the provisions on rebate upon prepayment
(IC 24-4.5-3-210), the debtor may prepay in full the unpaid balance of
a consumer loan, refinancing, or consolidation at any time without
penalty. With respect to a consumer loan that is primarily secured by
an interest in land, a lender may contract for a penalty for prepayment
of the loan in full, not to exceed two percent (2%) of any amount
prepaid within sixty (60) days of the date of the prepayment in full,
after deducting all refunds and rebates as of the date of the prepayment.
However, the penalty may not be imposed:
(a) if the loan is refinanced or consolidated with the same
creditor;
(b) for prepayment by proceeds of any insurance or acceleration
after default; or
(c) after three (3) years from the contract date.
(2) At the time of prepayment of a consumer loan not subject to the
provisions of rebate upon prepayment (IC 24-4.5-3-210), the total
finance charge, including the prepaid finance charge but excluding the
loan origination fee allowed under IC 24-4.5-3-201, may not exceed the
maximum charge allowed under this chapter for the period the loan was
in effect. For the purposes of determining compliance with this
subsection, the total finance charge does not include the following:
(a) The loan origination fee allowed under IC 24-4.5-3-201.
(b) The borrower debtor paid mortgage broker fee, if any, paid to
a person who does not control, is not controlled by, or is not under
common control with, the creditor holding the loan at the time a
consumer loan is prepaid.
(3) The creditor or mortgage servicer shall provide an accurate
payoff of the consumer loan to the debtor within ten (10) calendar days
after the creditor or mortgage servicer receives the debtor's written
request for the accurate consumer loan payoff amount. A creditor or
mortgage servicer who fails to provide the accurate consumer loan
payoff amount is liable for:
(a) one hundred dollars ($100) if an accurate consumer loan
payoff amount is not provided by the creditor or mortgage
servicer within ten (10) calendar days after the creditor or

mortgage servicer receives the debtor's first written request; and
(b) the greater of:
(i) one hundred dollars ($100); or
(ii) the loan finance charge that accrues on the loan from the
date the creditor or mortgage servicer receives the first written
request until the date on which the accurate consumer loan
payoff amount is provided;
if an accurate consumer loan payoff amount is not provided by the
creditor or mortgage servicer within ten (10) calendar days after
the creditor or mortgage servicer receives the debtor's second
written request, and the creditor or mortgage servicer failed to
comply with subdivision (a).
A liability under this subsection is an excess charge under
IC 24-4.5-5-202. (4) This subsection applies to a consumer credit loan that is a
mortgage transaction and with respect to which any installment or
minimum payment due is delinquent for at least ten (10) days. The
creditor, servicer, or the creditor's agent shall acknowledge a
written offer made in connection with a proposed short sale not
later than ten (10) business days after the date of the offer. The
creditor, servicer, or creditor's agent is required to acknowledge
a written offer made in connection with a proposed short sale from
a third party acting on behalf of the debtor only if the debtor has
provided written authorization for the creditor, servicer, or
creditor's agent to do so. Not later than twenty (20) business days
after receipt of an offer under this subsection, the creditor,
servicer, or creditor's agent shall respond to the offer with an
acceptance or a rejection of the offer. As used in this subsection,
"short sale" means a transaction in which the property that is the
subject of a mortgage transaction is sold for an amount that is less
than the amount of the debtor's outstanding obligation under the
mortgage transaction. A creditor or mortgage servicer that fails to
respond to an offer within the time prescribed by this subsection is
liable under the terms set forth in subsection (3), as if the creditor
or mortgage servicer had failed to provide a consumer loan payoff
amount.

extended with respect to a consumer loan the information required by
the Federal Consumer Credit Protection Act.(3) (2) For purposes of subsection (2), (1), disclosures shall not be
required on a consumer loan if the transaction is exempt from the
Federal Consumer Credit Protection Act.

SOURCE: IC 24-4.5-3-402; (08)HB1360.2.37. -->
SECTION 37. IC 24-4.5-3-402, AS AMENDED BY P.L.217-2007,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 402. (1) Except as provided in IC 24-9-4-3 with
respect to a high cost home loan (as defined in IC 24-9-2-8), with
respect to a consumer loan, other than one pursuant to a revolving loan
account or one on which only loan finance charges are payable prior to
the time that the final scheduled payment is due, if any scheduled
payment is more than twice as large as the average of earlier scheduled
payments, the debtor has the right to refinance the amount of that
payment at the time it is due without penalty. The terms of the
refinancing shall be no less favorable to the debtor than the terms of the
original loan. This section does not apply to the extent that the payment
schedule is adjusted to the seasonal or irregular income of the debtor.
(2) For the purposes of this section, .terms of the refinancing.
means:
(a) in the case of a fixed-rate consumer loan, the individual
payment amounts, the charges as a result of default by the debtor,
and the rate of the loan finance charge; and
(b) in the case of a variable rate consumer loan, the method used
to determine the individual payment amounts, the charges as a
result of default by the debtor, the method used to determine the
rate of the loan finance charge, the circumstances under which the
rate of the loan finance charge may increase, and any limitations
on the increase in the rate of the loan finance charge.
(3) If a consumer loan is made under the authority of the Alternative
Mortgage Transaction Parity Act (12 U.S.C. 3802 et seq.), the note
evidencing the mortgage must contain a reference to the applicable
federal law. (4) This section does not apply to a first lien mortgage
transaction.

SOURCE: IC 24-4.5-3-508; (08)HB1360.2.38. -->
SECTION 38. IC 24-4.5-3-508, AS AMENDED BY P.L.57-2006,
SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Sec. 508. Loan Finance Charge for Supervised
Loans . (1) With respect to a supervised loan, including a loan
pursuant to a revolving loan account, a supervised lender may contract
for and receive a loan finance charge not exceeding that permitted by
this section.
(2) The loan finance charge, calculated according to the actuarial
method, may not exceed the equivalent of the greater of either of the
following:
(a) the total of:
(i) thirty-six percent (36%) per year on that part of the unpaid
balances of the principal which is three hundred dollars ($300)
or less;
(ii) twenty-one percent (21%) per year on that part of the
unpaid balances of the principal which is more than three
hundred dollars ($300) but does not exceed one thousand
dollars ($1,000); and
(iii) fifteen percent (15%) per year on that part of the unpaid
balances of the principal which is more than one thousand
dollars ($1000); or
(b) twenty-one percent (21%) per year on the unpaid balances of
the principal.
(3) This section does not limit or restrict the manner of contracting
for the loan finance charge, whether by way of add-on, discount, or
otherwise, so long as the rate of the loan finance charge does not
exceed that permitted by this section. If the loan is precomputed:
(a) the loan finance charge may be calculated on the assumption
that all scheduled payments will be made when due; and
(b) the effect of prepayment is governed by the provisions on
rebate upon prepayment (IC 24-4.5-3-210).
(4) The term of a loan for the purposes of this section commences
on the date the loan is made. Differences in the lengths of months are
disregarded, and a day may be counted as one-thirtieth (1/30) of a
month. Subject to classifications and differentiations the lender may
reasonably establish, a part of a month in excess of fifteen (15) days
may be treated as a full month if periods of fifteen (15) days or less are
disregarded and that procedure is not consistently used to obtain a
greater yield than would otherwise be permitted.
(5) Subject to classifications and differentiations, the lender may
reasonably establish and make the same loan finance charge on all
principal amounts within a specified range. A loan finance charge does
not violate subsection (2) if:
(a) when applied to the median amount within each range, it does
not exceed the maximum permitted in subsection (2); and
(b) when applied to the lowest amount within each range, it does
not produce a rate of loan finance charge exceeding the rate
calculated according to paragraph (a) by more than eight percent
(8%) of the rate calculated according to paragraph (a).
(6) The amounts of three hundred dollars ($300) and one thousand
dollars ($1,000) in subsection (2) and thirty dollars ($30) in subsection
(7) are subject to change pursuant to the provisions on adjustment of
dollar amounts (IC 24-4.5-1-106). For the adjustment of the amount of
thirty dollars ($30), the Reference Base Index to be used is the Index
for October 1992.
(7) With respect to a supervised loan not made pursuant to a
revolving loan account, the lender may contract for and receive a
minimum loan finance charge of not more than thirty dollars ($30). The
minimum loan finance charge allowed under this subsection may be
imposed only if:
(a) the borrower debtor prepays in full a consumer loan,
refinancing, or consolidation, regardless of whether the loan,
refinancing, or consolidation is precomputed;
(b) the loan, refinancing, or consolidation prepaid by the borrower debtor is subject to a loan finance charge that:
(i) is contracted for by the parties; and
(ii) does not exceed the rate prescribed in subsection (2); and
(c) the loan finance charge earned at the time of prepayment is
less than the minimum loan finance charge contracted for under
this subsection.

SOURCE: IC 24-4.5-8; (08)HB1360.2.39. -->
SECTION 39. IC 24-4.5-8 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JANUARY 1, 2009]: Chapter 8. Mortgage Transactions
Sec. 101. This chapter shall be known and may be cited as
Uniform Consumer Credit Code_First Lien Mortgage
Transactions.
Sec. 102. Except as provided in section 103 of this chapter, the
following do not apply to a first lien mortgage transaction under
this chapter: (a) IC 24-4.5-1.
(b) IC 24-4.5-2.
(c) IC 24-4.5-3.
(d) IC 24-4.5-4.
(e) IC 24-4.5-5.
(f) IC 24-4.5-6.
(g) IC 24-4.5-7.
Sec. 103. (1) The following apply to first lien mortgage
transactions under this chapter:
(a) IC 24-4.5-1-101 through IC 24-4.5-1-108 and
IC 24-4.5-1-201 through IC 24-4.5-1-302.
(b) IC 24-4.5-2-104, IC 24-4.5-2-105, IC 24-4.5-2-107,
IC 24-4.5-2-111, IC 24-4.5-2-208, IC 24-4.5-2-209,
IC 24-4.5-2-301, IC 24-4.5-2-407, IC 24-4.5-2-413 through
IC 24-4.5-2-415, IC 24-4.5-2-501, and IC 24-4.5-2-502.
(c) IC 24-4.5-3-101, IC 24-4.5-3-103, IC 24-4.5-3-104,
IC 24-4.5-3-106 through IC 24-4.5-3-109, IC 24-4.5-3-207,
IC 24-4.5-3-208, IC 24-4.5-3-301, IC 24-4.5-3-403 through
IC 24-4.5-3-405, IC 24-4.5-3-407, IC 24-4.5-3-408,
IC 24-4.5-3-503 through IC 24-4.5-3-505, IC 24-4.5-3-506,
IC 24-4.5-3-507, IC 24-4.5-3-512, IC 24-4.5-3-606,
IC 24-4.5-3-701.
(d) IC 24-4.5-4-101 through IC 24-4.5-4-305.
(e) IC 24-4.5-5-101 through IC 24-4.5-5-302.
(f) IC 24-4.5-6-101, IC 24-4.5-6-103 through IC 24-4.5-6-202,
and IC 24-4.5-6-204.
(2) A reference to a consumer loan in any provision set forth in
paragraph (1) shall be considered a reference to a first lien
mortgage transaction for purposes of this chapter.
Sec. 104. As used in this chapter, "tablefunding" means a
transaction in which:
(a) a person closes a loan in the person's own name as a
mortgagee with funds provided by others; and
(b) the loan is assigned simultaneously to the mortgage lender
providing the funding not later than one (1) business day after
the funding of the loan.
Sec. 105. As used in this chapter, "creditor" means a person:
(a) who regularly engages in the extension of first lien
mortgage transactions that are subject to a credit service
charge or loan finance charge, as applicable, or are payable
by written agreement in more than four (4) installments (not
including a down payment); and
(b) to whom the obligation is initially payable, either on the
face of the note or contract, or by agreement when there is not
a note or contract.
The term does not include a person who is initially payable as
mortgagee in a table funding transaction.
Sec. 106. Unless a person:
(a) is:
(i) a supervised financial organization (as defined in
IC 24-4.5-1-301(20));
(ii) a collection agency licensed under IC 25-11-1; or
(b) has first obtained a license from the department under this

chapter;
the person shall not regularly engage in Indiana as a creditor in
first lien mortgage transactions. If a person violates this section,
IC 24-4.5-4.5-202(2) applies to any first lien mortgage transaction
resulting from the violation.
Sec. 107. To become licensed under this chapter, a person must
comply with the licensing requirements set forth in
IC 24-4.5-3-503.
Sec. 108. (1) An applicant for a license under this chapter is
subject to a license application fee established by the department
under IC 28-11-3-5.
(2) A person licensed under this chapter is subject to:
(1) license renewal fees established by the department under
IC 28-11-3-5; and
(2) examination fees established by the department under
IC 28-11-3-5 to fund the department's regulation of the
person's first lien mortgage business.

SOURCE: IC 24-5-0.5-2; (08)HB1360.2.40. -->
SECTION 40. IC 24-5-0.5-2, AS AMENDED BY P.L.1-2007,
SECTION 165, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2008]: Sec. 2. (a) As used in this chapter:
(1) "Consumer transaction" means a sale, lease, assignment,
award by chance, or other disposition of an item of personal
property, real property, a service, or an intangible, except
securities and policies or contracts of insurance issued by
corporations authorized to transact an insurance business under
the laws of the state of Indiana, with or without an extension of
credit, to a person for purposes that are primarily personal,
familial, charitable, agricultural, or household, or a solicitation to
supply any of these things. However, the term includes the
following:
(A) A transfer of structured settlement payment rights under
IC 34-50-2.
(B) An unsolicited advertisement sent to a person by telephone
facsimile machine offering a sale, lease, assignment, award by
chance, or other disposition of an item of personal property,
real property, a service, or an intangible.
(2) "Person" means an individual, corporation, the state of Indiana
or its subdivisions or agencies, business trust, estate, trust,
partnership, association, nonprofit corporation or organization, or
cooperative or any other legal entity.
(3) "Supplier" means the following:
(A) A seller, lessor, assignor, or other person who regularly

engages in or solicits consumer transactions, including
soliciting a consumer transaction by using a telephone
facsimile machine to transmit an unsolicited advertisement.
The term includes a manufacturer, wholesaler, or retailer,
whether or not the person deals directly with the consumer.
(B) A person who contrives, prepares, sets up, operates,
publicizes by means of advertisements, or promotes a pyramid
promotional scheme. (C) With respect to a deceptive act described in section
3(h) of this chapter, a creditor:
(i) as defined in IC 24-9-2-6, with respect to a home loan;
or
(ii) as defined in IC 24-4.5-1-301(8), with respect to a
mortgage transaction.
(4) "Subject of a consumer transaction" means the personal
property, real property, services, or intangibles offered or
furnished in a consumer transaction.
(5) "Cure" as applied to a deceptive act, means either:
(A) to offer in writing to adjust or modify the consumer
transaction to which the act relates to conform to the
reasonable expectations of the consumer generated by such
deceptive act and to perform such offer if accepted by the
consumer; or
(B) to offer in writing to rescind such consumer transaction
and to perform such offer if accepted by the consumer.
The term includes an offer in writing of one (1) or more items of
value, including monetary compensation, that the supplier
delivers to a consumer or a representative of the consumer if
accepted by the consumer.
(6) "Offer to cure" as applied to a deceptive act is a cure that:
(A) is reasonably calculated to remedy a loss claimed by the
consumer; and
(B) includes a minimum additional amount that is the greater
of:
(i) ten percent (10%) of the value of the remedy under
clause (A), but not more than four thousand dollars
($4,000); or
(ii) five hundred dollars ($500);
as compensation for attorney's fees, expenses, and other costs
that a consumer may incur in relation to the deceptive act.
(7) "Uncured deceptive act" means a deceptive act:
(A) with respect to which a consumer who has been damaged

by such act has given notice to the supplier under section 5(a)
of this chapter; and
(B) either:
(i) no offer to cure has been made to such consumer within
thirty (30) days after such notice; or
(ii) the act has not been cured as to such consumer within a
reasonable time after the consumer's acceptance of the offer
to cure.
(8) "Incurable deceptive act" means a deceptive act done by a
supplier as part of a scheme, artifice, or device with intent to
defraud or mislead. The term includes a failure of a transferee of
structured settlement payment rights to timely provide a true and
complete disclosure statement to a payee as provided under
IC 34-50-2 in connection with a direct or indirect transfer of
structured settlement payment rights.
(9) "Pyramid promotional scheme" means any program utilizing
a pyramid or chain process by which a participant in the program
gives a valuable consideration exceeding one hundred dollars
($100) for the opportunity or right to receive compensation or
other things of value in return for inducing other persons to
become participants for the purpose of gaining new participants
in the program. The term does not include ordinary sales of goods
or services to persons who are not purchasing in order to
participate in such a scheme.
(10) "Promoting a pyramid promotional scheme" means:
(A) inducing or attempting to induce one (1) or more other
persons to become participants in a pyramid promotional
scheme; or
(B) assisting another in promoting a pyramid promotional
scheme.
(11) "Elderly person" means an individual who is at least
sixty-five (65) years of age.
(12) "Telephone facsimile machine" means equipment that has
the capacity to transcribe text or images, or both, from:
(A) paper into an electronic signal and to transmit that signal
over a regular telephone line; or
(B) an electronic signal received over a regular telephone line
onto paper.
(13) "Unsolicited advertisement" means material advertising the
commercial availability or quality of:
(A) property;
(B) goods; or

(C) services;
that is transmitted to a person without the person's prior express
invitation or permission, in writing or otherwise.
(b) As used in section 3(a)(15) of this chapter:
(1) "Directory assistance" means the disclosure of telephone
number information in connection with an identified telephone
service subscriber by means of a live operator or automated
service.
(2) "Local telephone directory" refers to a telephone classified
advertising directory or the business section of a telephone
directory that is distributed by a telephone company or directory
publisher to subscribers located in the local exchanges contained
in the directory. The term includes a directory that includes
listings of more than one (1) telephone company.
(3) "Local telephone number" refers to a telephone number that
has the three (3) number prefix used by the provider of telephone
service for telephones physically located within the area covered
by the local telephone directory in which the number is listed. The
term does not include long distance numbers or 800-, 888-, or
900- exchange numbers listed in a local telephone directory.

SOURCE: IC 24-5-0.5-3; (08)HB1360.2.41. -->
SECTION 41. IC 24-5-0.5-3, AS AMENDED BY P.L.85-2006,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 3. (a) The following acts or representations as to
the subject matter of a consumer transaction, made orally, in writing,
or by electronic communication, by a supplier, are deceptive acts:
(1) That such subject of a consumer transaction has sponsorship,
approval, performance, characteristics, accessories, uses, or
benefits it does not have which the supplier knows or should
reasonably know it does not have.
(2) That such subject of a consumer transaction is of a particular
standard, quality, grade, style, or model, if it is not and if the
supplier knows or should reasonably know that it is not.
(3) That such subject of a consumer transaction is new or unused,
if it is not and if the supplier knows or should reasonably know
that it is not.
(4) That such subject of a consumer transaction will be supplied
to the public in greater quantity than the supplier intends or
reasonably expects.
(5) That replacement or repair constituting the subject of a
consumer transaction is needed, if it is not and if the supplier
knows or should reasonably know that it is not.
(6) That a specific price advantage exists as to such subject of a

consumer transaction, if it does not and if the supplier knows or
should reasonably know that it does not.
(7) That the supplier has a sponsorship, approval, or affiliation in
such consumer transaction the supplier does not have, and which
the supplier knows or should reasonably know that the supplier
does not have.
(8) That such consumer transaction involves or does not involve
a warranty, a disclaimer of warranties, or other rights, remedies,
or obligations, if the representation is false and if the supplier
knows or should reasonably know that the representation is false.
(9) That the consumer will receive a rebate, discount, or other
benefit as an inducement for entering into a sale or lease in return
for giving the supplier the names of prospective consumers or
otherwise helping the supplier to enter into other consumer
transactions, if earning the benefit, rebate, or discount is
contingent upon the occurrence of an event subsequent to the time
the consumer agrees to the purchase or lease.
(10) That the supplier is able to deliver or complete the subject of
the consumer transaction within a stated period of time, when the
supplier knows or should reasonably know the supplier could not.
If no time period has been stated by the supplier, there is a
presumption that the supplier has represented that the supplier
will deliver or complete the subject of the consumer transaction
within a reasonable time, according to the course of dealing or the
usage of the trade.
(11) That the consumer will be able to purchase the subject of the
consumer transaction as advertised by the supplier, if the supplier
does not intend to sell it.
(12) That the replacement or repair constituting the subject of a
consumer transaction can be made by the supplier for the estimate
the supplier gives a customer for the replacement or repair, if the
specified work is completed and:
(A) the cost exceeds the estimate by an amount equal to or
greater than ten percent (10%) of the estimate;
(B) the supplier did not obtain written permission from the
customer to authorize the supplier to complete the work even
if the cost would exceed the amounts specified in clause (A);
(C) the total cost for services and parts for a single transaction
is more than seven hundred fifty dollars ($750); and
(D) the supplier knew or reasonably should have known that
the cost would exceed the estimate in the amounts specified in
clause (A).

(13) That the replacement or repair constituting the subject of a
consumer transaction is needed, and that the supplier disposes of
the part repaired or replaced earlier than seventy-two (72) hours
after both:
(A) the customer has been notified that the work has been
completed; and
(B) the part repaired or replaced has been made available for
examination upon the request of the customer.
(14) Engaging in the replacement or repair of the subject of a
consumer transaction if the consumer has not authorized the
replacement or repair, and if the supplier knows or should
reasonably know that it is not authorized.
(15) The act of misrepresenting the geographic location of the
supplier by listing a fictitious business name or an assumed
business name (as described in IC 23-15-1) in a local telephone
directory if:
(A) the name misrepresents the supplier's geographic location;
(B) the listing fails to identify the locality and state of the
supplier's business;
(C) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the calling area covered by the local telephone
directory; and
(D) the supplier's business location is located in a county that
is not contiguous to a county in the calling area covered by the
local telephone directory.
(16) The act of listing a fictitious business name or assumed
business name (as described in IC 23-15-1) in a directory
assistance data base if:
(A) the name misrepresents the supplier's geographic location;
(B) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the local calling area; and
(C) the supplier's business location is located in a county that
is not contiguous to a county in the local calling area.
(17) That the supplier violated IC 24-3-4 concerning cigarettes for
import or export.
(18) That a supplier knowingly sells or resells a product to a
consumer if the product has been recalled, whether by the order
of a court or a regulatory body, or voluntarily by the
manufacturer, distributor, or retailer unless the product has been
repaired or modified to correct the defect that was the subject of

the recall.
(19) That the supplier violated 47 U.S.C. 227, including any rules
or regulations issued under 47 U.S.C. 227.
(b) Any representations on or within a product or its packaging or
in advertising or promotional materials which would constitute a
deceptive act shall be the deceptive act both of the supplier who places
such representation thereon or therein, or who authored such materials,
and such other suppliers who shall state orally or in writing that such
representation is true if such other supplier shall know or have reason
to know that such representation was false.
(c) If a supplier shows by a preponderance of the evidence that an
act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error, such act shall not be
deceptive within the meaning of this chapter.
(d) It shall be a defense to any action brought under this chapter that
the representation constituting an alleged deceptive act was one made
in good faith by the supplier without knowledge of its falsity and in
reliance upon the oral or written representations of the manufacturer,
the person from whom the supplier acquired the product, any testing
organization, or any other person provided that the source thereof is
disclosed to the consumer.
(e) For purposes of subsection (a)(12), a supplier that provides
estimates before performing repair or replacement work for a customer
shall give the customer a written estimate itemizing as closely as
possible the price for labor and parts necessary for the specific job
before commencing the work.
(f) For purposes of subsection (a)(15), a telephone company or other
provider of a telephone directory or directory assistance service or its
officer or agent is immune from liability for publishing the listing of a
fictitious business name or assumed business name of a supplier in its
directory or directory assistance data base unless the telephone
company or other provider of a telephone directory or directory
assistance service is the same person as the supplier who has
committed the deceptive act.
(g) For purposes of subsection (a)(18), it is an affirmative defense
to any action brought under this chapter that the product has been
altered by a person other than the defendant to render the product
completely incapable of serving its original purpose. (h) In addition to the acts set forth in subsection (a), a violation
of IC 24-9 (concerning home loans) is a deceptive act under this
chapter.

SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) Except as provided in subsection (l), a
person relying upon an uncured or incurable deceptive act may bring
an action for the damages actually suffered as a consumer as a result of
the deceptive act or five hundred dollars ($500), whichever is greater.
The court may increase damages for a willful deceptive act in an
amount that does not exceed the greater of:
(1) three (3) times the actual damages of the consumer suffering
the loss; or
(2) one thousand dollars ($1,000).
Except as provided in subsection (j), the court may award reasonable
attorney fees to the party that prevails in an action under this
subsection. Except for a deceptive act described in section 3(h) of
this chapter, and except for purchases of time shares and camping
club memberships, this subsection does not apply to a consumer
transaction in real property, including a claim or action involving a
construction defect (as defined in IC 32-27-3-1(5)) brought against a
construction professional (as defined in IC 32-27-3-1(4)). exceptforpurchasesoftimesharesandcampingclubmemberships. This
subsection also does not apply to a violation of IC 24-4.7, IC 24-5-12,
or IC 24-5-14. Actual damages awarded to a person under this section
have priority over any civil penalty imposed under this chapter.
(b) Any person who is entitled to bring an action under subsection
(a) on the person's own behalf against a supplier for damages for a
deceptive act may bring a class action against such supplier on behalf
of any class of persons of which that person is a member and which has
been damaged by such deceptive act, subject to and under the Indiana
Rules of Trial Procedure governing class actions, except as herein
expressly provided. Except as provided in subsection (j), the court may
award reasonable attorney fees to the party that prevails in a class
action under this subsection, provided that such fee shall be determined
by the amount of time reasonably expended by the attorney and not by
the amount of the judgment, although the contingency of the fee may
be considered. Any money or other property recovered in a class action
under this subsection which cannot, with due diligence, be restored to
consumers within one (1) year after the judgment becomes final shall
be returned to the party depositing the same. Except for a deceptive
act described in section 3(h) of this chapter, and except for
purchases of time shares and camping club memberships, this
subsection does not apply to a consumer transaction in real property.
exceptforpurchasesoftimesharesandcampingclubmemberships.
Actual damages awarded to a class have priority over any civil penalty

imposed under this chapter.
(c) The attorney general may bring an action to enjoin a deceptive
act, including a deceptive act described in section 3(h) of this
chapter. However, with respect to all other consumer transactions
involving real property, the attorney general may seek to enjoin
patterns of incurable deceptive acts. withrespecttoconsumertransactionsinrealproperty. In addition, the court may:
(1) issue an injunction;
(2) order the supplier to make payment of the money unlawfully
received from the aggrieved consumers to be held in escrow for
distribution to aggrieved consumers;
(3) order the supplier to pay to the state the reasonable costs of
the attorney general's investigation and prosecution related to the
action; and
(4) provide for the appointment of a receiver.
(d) In an action under subsection (a), (b), or (c), the court may void
or limit the application of contracts or clauses resulting from deceptive
acts and order restitution to be paid to aggrieved consumers.
(e) In any action under subsection (a) or (b), upon the filing of the
complaint or on the appearance of any defendant, claimant, or any
other party, or at any later time, the trial court, the supreme court, or the
court of appeals may require the plaintiff, defendant, claimant, or any
other party or parties to give security, or additional security, in such
sum as the court shall direct to pay all costs, expenses, and
disbursements that shall be awarded against that party or which that
party may be directed to pay by any interlocutory order by the final
judgment or on appeal.
(f) Except as provided in subsection (l), any person who violates
the terms of an injunction issued under subsection (c) shall forfeit and
pay to the state a civil penalty of not more than fifteen thousand dollars
($15,000) per violation. For the purposes of this section, the court
issuing an injunction shall retain jurisdiction, the cause shall be
continued, and the attorney general acting in the name of the state may
petition for recovery of civil penalties. Whenever the court determines
that an injunction issued under subsection (c) has been violated, the
court shall award reasonable costs to the state.
(g) If a court finds any person has knowingly violated section 3 or
10 of this chapter, other than section 3(a)(19) or 3(h) of this chapter,
the attorney general, in an action pursuant to subsection (c), may
recover from the person on behalf of the state a civil penalty of a fine
not exceeding five thousand dollars ($5,000) per violation.
(h) If a court finds that a person has violated section 3(a)(19) of this

chapter, the attorney general, in an action under subsection (c), may
recover from the person on behalf of the state a civil penalty as follows:
(1) For a knowing or intentional violation, one thousand five
hundred dollars ($1,500).
(2) For a violation other than a knowing or intentional violation,
five hundred dollars ($500).
A civil penalty recovered under this subsection shall be deposited in
the consumer protection division telephone solicitation fund
established by IC 24-4.7-3-6 to be used for the administration and
enforcement of section 3(a)(19) of this chapter.
(i) An elderly person relying upon an uncured or incurable
deceptive act, including an act related to hypnotism, may bring an
action to recover treble damages, if appropriate.
(j) An offer to cure is:
(1) not admissible as evidence in a proceeding initiated under this
section unless the offer to cure is delivered by a supplier to the
consumer or a representative of the consumer before the supplier
files the supplier's initial response to a complaint; and
(2) only admissible as evidence in a proceeding initiated under
this section to prove that a supplier is not liable for attorney's fees
under subsection (k).
If the offer to cure is timely delivered by the supplier, the supplier may
submit the offer to cure as evidence to prove in the proceeding in
accordance with the Indiana Rules of Trial Procedure that the supplier
made an offer to cure.
(k) A supplier may not be held liable for the attorney's fees and
court costs of the consumer that are incurred following the timely
delivery of an offer to cure as described in subsection (j) unless the
actual damages awarded, not including attorney's fees and costs, exceed
the value of the offer to cure. (l) The following apply to a deceptive act described in section
3(h) of this chapter:
(1) A person aggrieved by an uncured or incurable deceptive
act described in section 3(h) of this chapter may bring an
action under subsection (a) for the damages actually suffered
as a consumer as a result of the deceptive act. The court may
increase damages for a willful deceptive act in an amount that
does not exceed three (3) times the actual damages of the
consumer suffering the loss.
(2) For a violation of an injunction issued under subsection
(c), a civil penalty of not more than thirty thousand dollars
($30,000) may be imposed under subsection (f).
(3) If a court finds any person has knowingly violated section
3(h) of this chapter, the attorney general, in an action
pursuant to subsection (c), may recover from the person on
behalf of the state a civil penalty of a fine not exceeding ten
thousand dollars ($10,000) per violation. A civil penalty
recovered under this subdivision shall be deposited in the
homeowner protection unit account established by
IC 4-6-12-9.

SOURCE: IC 24-5-0.5-8; (08)HB1360.2.43. -->
SECTION 43. IC 24-5-0.5-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 8. (a) Except as
provided in subsection (b), a person who commits an incurable
deceptive act is subject to a civil penalty of a fine of not more than five
hundred dollars ($500) for each violation. The attorney general, acting
in the name of the state, has the exclusive right to petition for recovery
of such a fine, and this fine may be recovered only in an action brought
under section 4(c) of this chapter. (b) A person who commits an incurable deceptive act described
in section 3(h) of this chapter is subject to a civil penalty of a fine
of not more than one thousand dollars ($1,000) for each violation.
The attorney general, acting in the name of the state, has the
exclusive right to petition for recovery of the fine, and the fine may
be recovered only in an action brought under section 4(c) of this
chapter.

SOURCE: IC 24-9-3-1.1; (08)HB1360.2.44. -->
SECTION 44. IC 24-9-3-1.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2008]: Sec. 1.1. (a) As used in this section, "creditworthiness",
with respect to a prospective borrower, means those factors likely
to affect the prospective borrower's ability to repay a home loan at
the home loan's trigger rate, including the following:
(1) The prospective borrower's present and future:
(A) income, not including overtime payments, seasonal
compensation, or other irregular income;
(B) expenses, including property taxes and insurance
payments owed in connection with the home that is the
subject of the home loan;
(C) assets; and
(D) liabilities.
(2) The prospective borrower's credit history.
(3) Any other factor likely to affect the prospective borrower's
ability to repay the home loan at the home loan's trigger rate.
(b) For purposes of this section, a creditor conducts a
"reasonable inquiry" into a prospective borrower's

creditworthiness if the creditor:
(1) obtains a consumer report (as defined in IC 24-5-24-2) or
other information maintained by a consumer reporting
agency (as defined in IC 24-5-24-3) with respect to the
prospective borrower; and
(2) obtains information about the prospective borrower
through:
(A) a current or past employer of the prospective
borrower;
(B) public records; or
(C) any other legal or commercially reasonable means.
(c) As used in this section, "stated income or no documentation
loan" means a home loan with respect to which a creditor:
(1) relies solely on a prospective borrower's written or oral
statement of the prospective borrower's creditworthiness; and
(2) does not independently verify the accuracy of the
prospective borrower's statement by conducting a reasonable
inquiry into the prospective borrower's creditworthiness;
in making an underwriting determination with respect to the
prospective borrower.
(d) A creditor may not do either of the following:
(1) Recommend or issue a stated income or no documentation
loan to a prospective borrower.
(2) Recommend or issue a home loan to a prospective
borrower without first conducting a reasonable inquiry into
the prospective borrower's creditworthiness. A creditor, or
any officer, agent, or employee of a creditor, that conducts a
reasonable inquiry under this section is not liable to:
(A) a borrower or prospective borrower;
(B) a subsequent purchaser of a home that was the subject
of a home loan on which a borrower has defaulted; or
(C) any other person;
if a borrower later defaults on a home loan issued by the
creditor.

SOURCE: IC 24-9-3-6; (08)HB1360.2.45. -->
SECTION 45. IC 24-9-3-6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 6. (a) A creditor may
not charge a fee for informing or transmitting to a person the balance
due to pay off a home loan or to provide a written release upon
prepayment. A creditor must provide a payoff balance not later than ten
(10) business calendar days after the request is received by the
creditor. (b) For purposes of this section, subsection, "fee" does not
include actual charges incurred by a creditor for express or priority

delivery requested by the borrower of home loan documents to the
borrower. (b) This subsection applies to a home loan with respect to which
any installment or minimum payment due is delinquent for at least
ten (10) days. The creditor, servicer, or the creditor's agent shall
acknowledge a written offer made in connection with a proposed
short sale not later than ten (10) business days after the date of the
offer. The creditor, servicer, or creditor's agent is required to
acknowledge a written offer made in connection with a proposed
short sale from a third party acting on behalf of the debtor only if
the debtor has provided written authorization for the creditor,
servicer, or creditor's agent to do so. Not later than twenty (20)
business days after receipt of an offer under this subsection, the
creditor, servicer, or creditor's agent shall respond to the offer
with an acceptance or a rejection of the offer. As used in this
subsection, "short sale" means a transaction in which the property
that is the subject of a home loan is sold for an amount that is less
than the amount of the borrower's outstanding obligation on the
home loan. A creditor, a servicer, or a creditor's agent that fails to
respond to an offer within the time prescribed by this subsection is
liable under the terms set forth in IC 24-4.5-3-209(3), as if the
creditor, servicer, or agent had failed to provide a consumer loan
payoff amount.

SOURCE: IC 24-9-4-8; (08)HB1360.2.46. -->
SECTION 46. IC 24-9-4-8 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 8. (a) A creditor may
not make a high cost home loan without regard to repayment ability.
(b) If a creditor presents evidence that the creditor: (1) followed commercially reasonable practices in determining
the borrower's debt to income ratio; and (2) conducted a reasonable inquiry into a prospective
borrower's creditworthiness under IC 24-9-3-1.1;
there is a rebuttable presumption that the creditor made the high cost
home loan with due regard to repayment ability. Forpurposesofthissection,thereisarebuttablepresumptionthattheborrower'sstatementofincomeprovidedtothecreditoristrueandcomplete.
(c) For purposes of subsection (b)(1), commercially reasonable
practices include the use of:
(1) the debt to income ratio:
(A) listed in 38 CFR 36.4337(c)(1); and
(B) defined in 38 CFR 36.4337(d); and
(2) the residual income guidelines established under:
(A) 38 CFR 36.4337(e); and
(B) United States Department of Veterans Affairs form
26-6393.

SOURCE: IC 24-9-4.5; (08)HB1360.2.47. -->
SECTION 47. IC 24-9-4.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Chapter 4.5. Residential Real Estate Closings
Sec. 1. This chapter applies to a home loan closing that takes
place after June 30, 2008.
Sec. 2. As used in this chapter, "closing documents" refers to the
documents that a settlement service provider is required to provide
to a borrower at or before the closing of a home loan, in
accordance with the requirements of the federal Real Estate
Settlement Procedures Act (12 U.S.C. 2601 et seq.) as amended.
Sec. 3. (a) As used in this chapter, "settlement service provider"
means a person that provides services in connection with the
closing of a real estate transaction, including the provision of title
examinations or title insurance.
(b) The term includes a closing agent (as defined in
IC 6-1.1-12-43(a)(2)).
Sec. 4. A creditor shall provide a prospective borrower with a
notice that states that the prospective borrower has a right to
receive, at least forty-eight (48) hours before the closing of a home
loan, the closing documents with respect to the home loan. The
creditor shall provide the notice required by this section at the
same time that the creditor provides the good faith estimates
required under the federal Real Estate Settlement Procedures Act
(12 U.S.C. 2601 et seq.) as amended.
Sec. 5. (a) Subject to subsection (b), not later than forty-eight
(48) hours before the closing of a home loan, a settlement service
provider shall make available to the borrower the closing
documents with respect to the home loan. The settlement service
provider shall make the closing documents available to the
borrower:
(1) at the office of the creditor or the settlement service
provider;
(2) through the United States mail;
(3) by facsimile; or
(4) through any other commercially reasonable means. (b) A borrower may waive the right to receive the closing
documents with respect to a home loan by providing a written
notice of waiver to the settlement service provider at or before the
time of closing. (c) If the terms of the home loan set forth in the closing
documents made available to the borrower under subsection (a)
differ from the terms of the home loan presented to the borrower
at the time of the closing, the borrower is entitled to delay or
reschedule the closing without penalty and without forfeiting the
right to enter into the loan or, in the case of a purchase money
home loan, into the purchase contract. For purposes of this
subsection, "terms", with respect to a home loan, include any of the
following:
(1) The total loan amount.
(2) The loan's rate, including the trigger rate.
(3) Points and fees.
(4) Payment amounts and schedules. (5) The term or duration of the loan.
(6) Prepayment penalties, if any.
(7) Acceleration provisions.
(8) Servicing of the loan.
(9) Other provisions concerning the rights and responsibilities
of the parties to the home loan. Sec. 6. (a) A settlement service provider is subject to a civil
penalty of twenty-five dollars ($25) for each instance in which the
settlement service provider fails to:
(1) provide a prospective borrower with the notice required
by section 4 of this chapter; or
(2) make closing documents available to a borrower as
required by section 5 of this chapter, unless the borrower has
waived the borrower's right to receive the closing documents
under section 5(b) of this chapter.
(b) A penalty described in subsection (a):
(1) may be enforced by the state agency that has
administrative jurisdiction over the settlement service
provider in the same manner that the agency enforces the
payment of fees or other penalties payable to the agency; and
(2) shall be paid into the property tax replacement fund.
(c) A settlement service provider is not liable for any other
damages claimed by a customer because of the closing agent's
failure to comply with this chapter.

SOURCE: IC 24-9-5-4; (08)HB1360.2.48. -->
SECTION 48. IC 24-9-5-4, AS AMENDED BY P.L.3-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2008]: Sec. 4. (a) A person who violates this article is liable
to a person who is a party to the home loan transaction that gave rise to
the violation for the following:
(1) Actual damages, including consequential damages. A person
is not required to demonstrate reliance in order to receive actual
damages.
(2) Statutory damages equal to two(2) four (4) times the finance
charges agreed to in the home loan agreement.
(3) Costs and reasonable attorney's fees.
(b) A person may be granted injunctive, declaratory, and other
equitable relief as the court determines appropriate in an action to
enforce compliance with this chapter.
(c) The right of rescission granted under 15 U.S.C. 1601 et seq. for
a violation of the federal Truth in Lending Act (15 U.S.C. 1601 et seq.)
is available to a person acting only in an individual capacity by way of
recoupment as a defense against a party foreclosing on a home loan at
any time during the term of the loan. Any recoupment claim asserted
under this provision is limited to the amount required to reduce or
extinguish the person's liability under the home loan plus amounts
required to recover costs, including reasonable attorney's fees. This
article shall not be construed to limit the recoupment rights available
to a person under any other law.
(d) The remedies provided in this section are cumulative but are not
intended to be the exclusive remedies available to a person. Except as
provided in subsection (e), a person is not required to exhaust any
administrative remedies under this article or under any other applicable
law.
(e) Before bringing an action regarding an alleged deceptive act
under this chapter, a person must:
(1) notify the homeowner protection unit established by
IC 4-6-12-2 of the alleged violation giving rise to the action; and
(2) allow the homeowner protection unit at least ninety (90) days
to institute appropriate administrative and civil action to redress
a violation.
(f) An action under this chapter must be brought within five (5)
years after the date that the person knew, or by the exercise of
reasonable diligence should have known, of the violation of this article.
(g) An award of damages under subsection (a) has priority over a
civil penalty imposed under this article.

SOURCE: IC 24-9-8-1; (08)HB1360.2.49. -->
SECTION 49. IC 24-9-8-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 1. A person who
knowingly or intentionally violates this article commits:
(1) a Class Amisdemeanor; D felony; and
(2) an act that is actionable by the attorney general under
IC 24-5-0.5 and is subject to the penalties listed in IC 24-5-0.5.

SOURCE: IC 24-9-8-3; (08)HB1360.2.50. -->
SECTION 50. IC 24-9-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 3. (a) The attorney
general may bring an action to enjoin a violation of this article. A court
in which the action is brought may:
(1) issue an injunction;
(2) order a person to make restitution;
(3) order a person to reimburse the state for reasonable costs of
the attorney general's investigation and prosecution of the
violation of this article; and
(4) impose a civil penalty of not more than ten twenty thousand
dollars ($10,000) ($20,000) per violation.
(b) A person who violates an injunction under this section is subject
to a civil penalty of not more than ten twenty thousand dollars
($10,000) ($20,000) per violation.
(c) The court that issues an injunction retains jurisdiction over a
proceeding seeking the imposition of a civil penalty under this section.

SOURCE: IC 25-34.1-8-10; (08)HB1360.2.51. -->
SECTION 51. IC 25-34.1-8-10 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 10. (a) To be licensed
or certified as a real estate appraiser, an individual must meet the
following conditions:
(1) Not have a conviction for any of the following:
(A) An act that would constitute a ground for disciplinary
sanction under IC 25-1-11.
(B) A crime that has a direct bearing on the individual's ability
to practice competently.
(C) Fraud or material deception in the course of professional
services or activities.
(D) A crime that indicates the individual has the propensity to
endanger the public.
(2) Have satisfied the requirements established under
IC 25-34.1-3-8(f). (b) After June 30, 2008, the board shall require each applicant
for initial licensure or certification under this chapter to submit
fingerprints for a national criminal history background check (as
defined in IC 10-13-3-12) by the Federal Bureau of Investigation,
for use by the board in determining whether the applicant should
be denied licensure or certification under this chapter for any
reason set forth in subsection (a)(1). The applicant shall pay any
fees or costs associated with the fingerprints and background check
required under this subsection. The board may not release the
results of a background check described in this subsection to any
private entity. (c) The board may request evidence of compliance with this
section in accordance with subsection (d). Evidence of compliance
with this section may include any of the following:
(1) Subject to subsections (b) and (d)(2), criminal background
checks, including a national criminal history background
check (as defined in IC 10-13-3-12) by the Federal Bureau of
Investigation.
(2) Credit histories.
(3) Other background checks considered necessary by the
board.
(d) The board may request evidence of compliance with this
section at any of the following times:
(1) The time of application for an initial license or certificate.
(2) The time of renewal of a license or certificate.
(3) Any other time considered necessary by the board. (e) The commission, upon recommendation of the board, shall
adopt rules under IC 4-22-2 to implement this section.

SOURCE: IC 34-30-2-16.6; (08)HB1360.2.52. -->
SECTION 52. IC 34-30-2-16.6 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2008]: Sec. 16.6. IC 6-1.1-12-43
(Concerning a closing agent's agent for failure to file, submit, or
provide aform a customer with certain forms concerning property
tax benefits, or for any determination made with respect to a
customer's eligibility for a benefit).

SOURCE: ; (08)HB1360.2.55. -->
SECTION 55. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "task force" refers to the mortgage lending and fraud
prevention task force created under subsection (b).
(b) Not later than May 1, 2008, the following agencies shall
create the mortgage lending and fraud prevention task force by
each appointing an equal number of representatives to serve on the
task force:
(1) The securities division of the office of the secretary of state
established under IC 23-19-6-1(a).
(2) The homeowner protection unit established by the
attorney general under IC 4-6-12-2.
(3) The department of financial institutions established by

IC 28-11-1-1.
(4) The department of insurance created by IC 27-1-1-1.
(5) The Indiana real estate commission created by
IC 25-34.1-2-1.
(6) The real estate appraiser licensure and certification board
created by IC 25-34.1-8-1.
(c) The members of the task force shall annually appoint a chair
from among the members of the task force. Each year, the
chairmanship shall rotate among the agencies set forth in
subsection (b).
(d) Subject to subsection (e), beginning not later than July 2008,
the task force shall meet each month to:
(1) coordinate the state's efforts to:
(A) regulate the various participants involved in
originating, issuing, and closing home loans;
(B) enforce state laws and rules concerning mortgage
lending practices and mortgage fraud; and
(C) prevent fraudulent practices in the home loan industry
and investigate and prosecute cases involving mortgage
fraud; and
(2) share information and resources necessary for the efficient
administration of the tasks set forth in subdivision (1).
(e) With respect to any meeting of the task force:
(1) one (1) or more members of the task force may participate
in the meeting; or
(2) the meeting may be conducted in its entirety;
by means of a conference telephone or similar communications
equipment by which all persons participating in the meeting can
communicate with each other. Participation by the means
described in this subsection constitutes presence in person at the
meeting.
(f) Beginning in 2008, not later than November 1 of each year,
the task force shall report to the legislative council on the activities
of the task force during the most recent state fiscal year. The
report required under this subsection must include:
(1) information on the regulatory activities of each agency
described in subsection (b), including a description of any:
(A) investigations conducted; or
(B) disciplinary actions taken or criminal prosecutions
pursued;
with respect to the professions involved in originating, issuing,
and closing home loans;

(2) a description of any challenges:
(A) encountered by the task force during the most recent
state fiscal year; or
(B) anticipated by the task force in the current state fiscal
year; in
carrying out the duties set forth in subsection (d);
(3) any additional information required by the legislative
council; and
(4) any recommendations by the task force for legislation
necessary to assist the task force in carrying out the duties set
forth in subsection (d).
A report to the legislative council under this subsection must be in
an electronic format under IC 5-14-6.

SOURCE: ; (08)HB1360.2.56. -->
SECTION 56. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "authority" refers to the Indiana housing and
community development authority created by IC 5-20-1-3.
(b) As used in this SECTION, "mortgage transaction" has the
meaning set forth in IC 24-4.5-8-104.
(c) Not later than November 1, 2008, the authority shall provide
a report to the legislative council that includes the following:
(1) An identification of:
(A) new sources of funding that can be used to assist
Indiana homeowners in refinancing their existing
mortgage transactions; or
(B) existing sources of funding that can be directed or
redirected to assist Indiana homeowners in refinancing
their existing mortgage transactions;
in order to prevent the foreclosure of the homes secured by
homeowners' existing mortgage transactions.
(2) A plan for the rehabilitation of neighborhoods or
communities in Indiana that have been adversely or
disproportionately affected by mortgage foreclosures. The
plan required by this subdivision must include an
identification of the following:
(A) The areas in Indiana that have been adversely or
disproportionately affected by mortgage foreclosures,
including any statistics or data used to identify the areas.
(B) New or existing sources of funding that can be directed
or redirected to the proposed rehabilitation efforts.
(3) Any recommendations for legislation that the authority
determines is needed to accomplish the objectives described
in subdivisions (1) and (2).
(4) Any other recommendations of the authority concerning:
(A) the prevention of mortgage foreclosures; or
(B) the rehabilitation of neighborhoods or communities
adversely or disproportionately affected by mortgage
foreclosures.
(d) The report to the legislative council required by this
SECTION must be in an electronic format under IC 5-14-6. (e) This SECTION expires January 1, 2010.

SOURCE: ; (08)HB1360.2.57. -->
SECTION 57. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "commissioner" refers to the securities commissioner
appointed under IC 23-19-6-1.
(b) As used in this SECTION, "director" refers to the director
of the department of financial institutions appointed under
IC 28-11-2-1.
(c) The commissioner and the director shall cooperate to
determine the appropriate state agency or department to oversee
the regulation of a person that is, has been, or may be subject to
regulation, licensure, or registration under both:
(1) IC 23-2-5; and
(2) IC 24-4.5, as amended by this act.
(d) The commissioner and the director shall issue joint
guidelines to address the appropriate regulation of a person
described in subsection (c) not later than September 1, 2008. The
joint guidelines issued under this subsection must include any
recommendations for legislation needed to implement the
appropriate regulation of a person described in subsection (c), as
determined by the commissioner and the director.
(e) This SECTION expires January 1, 2010.

SOURCE: ; (08)HB1360.2.58. -->
SECTION 58. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "board" refers to the real estate appraiser licensure
and certification board created by IC 25-34.1-8-1.
(b) As used in this SECTION, "commission" refers to the
Indiana real estate commission created by IC 25-34.1-2-1.
(c) Notwithstanding IC 25-34.1-8-10(e), as added by this act, the
commission shall adopt rules to implement IC 25-34.1-8-10, as
amended by this act, in the same manner as emergency rules are
adopted under IC 4-22-2-37.1. Not later than May 1, 2008, the
board shall make recommendations to the commission concerning
the rules needed to implement IC 25-34.1-8-10, as amended by this
act. The commission shall adopt any emergency rules under this
SECTION not later than June 1, 2008. An emergency rule adopted
under this SECTION:
(1) takes effect on July 1, 2008; and
(2) expires on the earlier of:
(A) the date the rule is adopted by the commission under
IC 4-22-2-24 through IC 4-22-2-36; or
(B) January 1, 2010.
(d) This SECTION expires January 1, 2010.

SOURCE: ; (08)HB1360.2.59. -->
SECTION 59. An emergency is declared for this act.